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Regardiung problems with deflation: throw in that even sound business are clobbered on paper because whenever they make anything, it proceeds to decrease in value. Takiing a loss on all inventory with each tick of the clock makes business even less willing to produce, laying people off and killing more demand.
Only accounting done in 'constant dollars' would have a prayer of sort-of accurately portraying the business, and that would be all distorted because the indexes used to adjust dollar values would introduce their own inaccuracies.
Last edited by donquixote99; 03-12-2014 at 09:11 PM.
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