A deflationary or zero-inflation world creates perverse incentives where consumers rationally delay purchases because goods will be cheaper tomorrow, triggering negative economic spirals, which is why some modest amount of inflation is structurally healthy for economies.
causalpending
Speaker
Barry RitholtzEvidence Quote
“you run into the risk that the consumer is going to say why do I want to buy this today if it's going to be cheaper tomorrow and so suddenly you're in this negative economic spiral”
Source
Why Money Isn't What You Think: Barry Ritholtz on the Meaning of Money and How NOT to Invest It— Excess ReturnsCreated: 8/11/2026, 5:35:27 AM
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