[cconroy]

"Inflation is caused when the money supply in an economy grows at faster rate than the economy’s ability to produce goods and services."

I would rather have (monetary) deflation when then economy grows. Then the money I save in would increase in purchasing power. If I save in the money described in the quote above, I don't participate in the growth.

[arcticbull]

That quote is specifically addressed, I went into detail about how that only applies in steady-state, and that reality isn't a steady-state making this, and (MV = PQ) and incomplete model.

> I would rather have (monetary) deflation when then economy grows. Then the money I save in would increase in purchasing power. If I save in the money described in the quote above, I don't participate in the growth.

So you want a risk-free return for doing nothing. Of course, who wouldn't. Elementary school kids want pizza every day for lunch. Why should you participate in the growth of the economy while risking literally nothing, in exchange for literally no input of your own? Just because you got there "first"? That's just "UBI for me, and everyone else can get rekt."

All the worst economic periods in history were deflationary, and if you believe in the Philips curve, then maximum employment and prosperity is achieved at a low, positive rate of inflation.

Your job in the economy is to productively allocate your excess capital. Under your mattress in exchange for positive real return at no risk to you is not a productive allocation. The whole point of inflation is to discourage that behavior. So I'd say it works.

Either way, none of this has anything to do with this silly graph.