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There are a lot of economists that would argue that deflationary spirals don't actually occur, mainly Chicago and Austrian School economists.



In which case those economists are simply wrong.


Seriously, anyone who thinks deflation is good is either short sighted or stupid. Fundamentally, if my money is worth more tomorrow, I won't spend it today, and you halt the entire economic system like that.

I like peercoin, which is a bitcoin that can maintain wallets without the full block chain, do less expensive proof of work problems when the network is computationally competitive enough, and has a fixed inflation rate of 1%.

The only improvement I'd like to see is a currency that uses a coin generation algorithm based off recent monetary velocity, so that if exchange slows the inflation rate increases to stimulate more exchange, and if a lot of money is changing hands the inflation rate is slowed, with a targeted turnover ratio of the entire economy that is whatever is most economically healthy, it would require research.




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