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@ The Modern Sovereign
2025-05-08 10:04:10
Deflation: The Market’s Natural State?
In a truly competitive and efficient market, deflation—a gradual decline in prices—isn’t a crisis, it’s a feature. As technology improves and productivity rises, goods and services become cheaper to produce. That efficiency drives prices down.
When prices fall due to innovation, the purchasing power of money increases. In other words, your dollars go further. This kind of deflation benefits savers, encourages long-term thinking, and lowers people’s time preference—they're more likely to save and invest, knowing their money will be worth more tomorrow.
Deflation rooted in progress isn’t something to fear—it’s a sign the market is working.
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