Comment Re:The Problem (Score 1) 332
How is someone paying back a loan with continuously compounded interest as now any different than that same individual paying back the same loan with interest swapped out for deflation?
With deflation THERE IS NO LOAN. The person with the money can just sit on and wait for it to appreciate. There is no reason to take a risk and actually loan it out or invest it. That is why deflation causes economies to grind to a halt.