[mindcrime]

All of which would be perfectly reasonable if humans were completely rational actors. But we all know we're not. We're semi-rational at best. Yes we try to maximize utility, but we're not Commander Data, calculating equations in our heads down the the 999999 points of precision, and coldly make decisions based on purely financial measures.

This is even more true for some things than others... few people are going to say "Hey, deflation is on, let me wait until next week to eat" when they're hungry today.

I'm not saying deflation is good or anything, but an awful lot of economic theory is rooted in some pretty shaky foundations.