[arvinds]

He should have added a link to this alltime classic - a good macroeconomics, deflation 101 tutorial: http://www.slate.com/id/1937/

[jtolle]

I was going to mention that article too. It's a great explanation.

Money and monetary systems are human creations, not laws of nature.

[arvinds]

Yeah - it always amuses me to read these long detailed arguments on these threads from people who seem to not have understood basic macroeconomics.

[scrollbar]

Econ isn't a science. There are schools of economic thought that completely contradict "basic economics" taught in schools today, and you can't possibly prove that one or the other method is correct.

Hence, Economics: the dismal science.

[arvinds]

I have to disagree here. Yes there are schools of thought, but questions like "how does a market work?", "what causes deflation?" are pretty well studied and agreed upon. This is one of those very basic settled questions with a very clear accessible explanation.