[mildchalupa]

Deflation also increases the value of debt, so loans become harder to pay back. For those lucky enough to get a low interest rate loan a high inflation rate eats away at the value of the debt.

If we look at maxima and minima, Infinite deflation would make the value of debt infinitely high. Infinate inflation would drive the value of debt to 0

[qp11]

I was thinking about that, sort of why I said - > If living standards rise and DEBT levels DROP due to increasing efficiencies and productivity then we should allow Prices to fall.

I think with better goals we can get more comfortable with falling prices.