Kyle Montanio on Nostr: That's fair. But almost all macroeconomists worry about deflation - hence the FED's ...

That's fair. But almost all macroeconomists worry about deflation - hence the FED's target of 2% inflation. I think the big reason is a fear that a deflation spiral can kill consumer spending triggering a recession/depression pretty quickly.

Obviously economists have gotten things wrong before, so it's far from proof. But I'm inclined to trust them on it (it's definitely a bit outside my wheelhouse), at least until there is strong evidence/theory that those risks are overstated.