[riku_iki]

It pushes currency holders to hold currency in their pockets to gain interest (sell it later for more), and not put it to economy's circulation.

[vkhorikov]

That's a quite simplistic Keynesian view of economics. Economy != money changing hands. Savings are necessary for economic growth as they represent unspent resources in the economy that can be put into long-term projects and investments.

[riku_iki]

That's the thing with deflation: money holders don't have incentive to put it into "long-term projects".

[vkhorikov]

Do the money holders keep their money in their house? Or do they keep it in banks? What the banks do with the money? Nothing? Or lend it to new businesses/invest it?