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[–] ForTheUltimate ago
I already answered before.
[–] 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.