[–] CanIHazPhD ago
No, you didn't. This is your supposed explanation on why deflation would lead to a better allocation of resources (and a false one at that).
I'm asking you to explain the historical reality that, save for very particular exceptions (that can be explained by secondary factors), deflation has lead to loss of growth, recessions and crashes throughout modern economical history. But you can't right? That's why you tried that it about intervention at the end, that makes no sense at all.
[–] ForTheUltimate ago (edited ago)
I just did. The investments you caused into being simply cannot be profitable at the higher interest, thus raising interest rates causes a recession.
What good examples? I require a rational explanation. No it does not. Your explanation is sorely lacking.
[–] CanIHazPhD ago
You say my explanation on why it's easier to pick up a gold nugget from the ground than dig a mile into the earth or get oil from a shallow reservoir than from shale is sorely lacking and then you post this
Also your "explanation" does not fit reality, look at the interest rate from 1946-1981, it has the greatest rise since 1800, from ~3% to ~10% Interest, and look at gdp growth for those same years GDP growth, no recession. Now, if you look at 1920 to 1946, interest rates had a slow but steady decline and you have a recession. If you look at 2000-2016 you'll see a sharp decline, and there is another recession. Exactly the opposite of what you state.
I'm starting to see that you are just covering your ears and going "nah nah nah, I can't hear you".