Deflation
Author
Discussion

loafer123

Original Poster:

16,547 posts

240 months

Friday 24th April
quotequote all

Given the current economic situation, this might seem an odd subject, but it occurs to me that, with a combination of;

Productivity gains from AI
Robotics
Lower employment levels causing lower incomes
Cost of living pressure
Falling energy costs as renewables get cheaper

...deflation is a likely outcome in the medium term.

That delivers lower interest rates, again pushing down inflation.

It also stops debt inflating away, but might enable governments to recap their own bond issuance by doing QE to increase the money supply and reinflate.

Any thoughts, PH Massive?

JuanCarlosFandango

9,607 posts

96 months

Friday 24th April
quotequote all
No, because they will keep printing enough money to make sure it doesn't happen.