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?
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.
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.