<p>I wouldn't necessarily agree that inflation is universally preferable to deflation. Each has positive and negative consequences. Inflation hurts savers, deflation hurts current consumers. A little inflation (let's say, 2% per year) is useful -- if nothing else, it helps deal with wage stickiness. Deflation, on the other hand, would be a godsend for a country like Venezuela where prices have been growing incessantly. </p>

<p>This is all to say that there isn't a single rule for inflation vs deflation. The broader economic context is critical.   </p>

CC BY-SA 3.0
2017-02-06T02:27:10.097Z
2017-02-06T02:27:10.097Z
Yevgeniy Feyman
<p>Why is in flation preferable to deflation?
I appreciate this is largely due to the fact that deflation causes a large decrease in demand as people continually wait for prices to decrease, but if anyone has finer points I would be grateful. </p>

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2017-02-06T07:12:27.583Z
I think the best duplicate match for this is http://economics.stackexchange.com/q/5861/44
410 gone
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2017-02-06T09:09:44.410Z
@EnergyNumbers My question was about no inflation vs inflation, not inflation vs deflation. You are right that its answers are better and are also applicable here.
Giskard
<inflation><deflation>
Inflation vs Deflation
John C
# Inflation vs Deflation

(Asked by: username_0 on 2017-02-05)

Why is in flation preferable to deflation?
I appreciate this is largely due to the fact that deflation causes a large decrease in demand as people continually wait for prices to decrease, but if anyone has finer points I would be grateful.

**Tags:** inflation, deflation

> **Comments:**
> **username_1**: I think the best duplicate match for this is http://economics.stackexchange.com/q/5861/44  
> **username_2**: @EnergyNumbers My question was about no inflation vs inflation, not inflation vs deflation. You are right that its answers are better and are also applicable here.  

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## 1 answers

### Answer by username_3 on 2017-02-06. Score: 1

I wouldn't necessarily agree that inflation is universally preferable to deflation. Each has positive and negative consequences. Inflation hurts savers, deflation hurts current consumers. A little inflation (let's say, 2% per year) is useful -- if nothing else, it helps deal with wage stickiness. Deflation, on the other hand, would be a godsend for a country like Venezuela where prices have been growing incessantly.

This is all to say that there isn't a single rule for inflation vs deflation. The broader economic context is critical.


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