SLP153 Philipp Bagus - What Most People Get Wrong About Deflation
Stephan Livera Podcast
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Is There a Need for Nominal Wages to Fall?
When businesses do longer term contracts, they typically build in some kind of c p i term to say, ok, will build in two % or three % inflation in the cost of whatever i'm buying. Or ling, if we were to flip that, and let's say we were living in a hard money standard, or sound money standard, and we wereliving in a deslationary world? Do you believe businesses would try to build in this kind of deflationary clause as part of their long-term plans? H no, no, they did not. And i think that they probably would not. Why? I can tell you why. Because if they see that prices will fall,
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