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 Ritholtz

Evidence 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 ItExcess Returns
Created: 8/11/2026, 5:35:27 AM

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