[pyrale]

A working economy means professional activity to make goods and services. Deflation actively kills that by incentivizing people to defer or cancel their purchases in favor of savings. So economic activity collapses.

There is no such thing as a durable deflationary market if it’s not justified by productivity gains and volume - and there is definitely no such thing as a durable deflationary economy.

[Detrytus]

The US was "a durable deflationary economy" for pretty much the whole 19th century, and first decade of 20th century. Things started to change once FED was created and given power over money supply.

[pyrale]

> for pretty much the whole 19th century

Not sure what you're refering to, the 1873 panic wasn't exactly the finest hour for US economy. I guess that's not what you want to get back to.

As for the rest of the 19th century, the data we have is mostly consumer price indexes, but I can't recollect another durable deflationary period in the century.