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To: ynot who wrote (28851)9/15/1999 5:42:00 PM
From: MeDroogies  Respond to of 50167
 
Deflation can be far more debilitating. US in 1930-37. Cycle of deflation was pervasive.
Again, inflation and deflation, when kept moderate, are negligible factors. Moderation is the key. Either in the 0-3% range is manageable.
Consider running your house, and you suddenly increase your spending by 10%...if you don't plan ahead (something that's difficult in macroeconomics), you suddenly need to earn (or save) 10% more. This puts crimps in plans. But swings of moderate figures appear as blips on your overall budget.