Inflation is good for debt holders, because they can pay off their debts with devalued money. Inflation is bad for those that save and invest because they have to earn a higher rate of return to offset inflation. Traditional economics tells the right story that inflation is not a good thing. Political economics (which is why economics is nowadays) tells you what fits the situation, so don’t work about it, eh?<p>Look at deflation pre-WW1 and not that not only was this a period of growth, but also one where downturns were sometimes severe but over very quickly. You have the Panics of 18xx, but not any panics that last years.