What is better for a country: deflation or controlled inflation?

[Junii]

Controlled inflation around 2% is better. It helps the growth of the economy, reduces the weight of the debts and encourages people to consume, instead of holding the money. Already deflation looks good in the beginning because the prices fall. But in practice it discourages the consumption, increases the weight of the debts and can cause years of stagnation, like happened in Japan.

Yeah i agree with you a stable inflation is good for buyers and sellers and it helps the economy as well also the citizens have good purchasing power because when the inflation is high for example i have a real estate business and i invest $100k then i sell all  my properties and get my money back but now i am not be able to buy the same number of plots when i reinvest that $100k because prices have increased and my purchasing power has fallen. Also deflation can also create problems. If people expect real estate prices has falling in the few days there are chances that they can hold their cash and wait for cheaper prices instead of buying now due to this it reduces demand slows transactions and effect the overall market so to maintain this a stability is better rather then sudden increasing or decreasing.       

[Pablo-wood]

Controlled or predictable level of inflation is by far better than deflation. Deflation can be very deceptive it might look ok for our wallets and balances but in real sense it kills our economy, make businesses suffer and hinder availability of jobs.

Controlled inflation gives consumers the choice to buy their needs early which keeps business running without having much persons hoarding their cash. It also encourages investments and increased wages. I also think borrowers finds it much easier to pay back loans during this kind of economy.

[LUCKMCFLY]

I've lived my whole life in a country with an inflationary economy, and it's the worst thing in the world. I don't recommend it—not even with 2% inflation, or anything like that. A stable economy, for me, is a deflationary one. In fact, Bitcoin's model is perfect.

Notice that Bitcoin has a limited supply, which only makes the currency more valuable over time. By limiting the supply, wealth increases because the value increases. Like everything, there are downturns, but then there are recoveries. In the end, a deflationary economy is much more effective because it eliminates many of the deficiencies and vulnerabilities that the current system has.

[Dareo]

But from the perspective of ordinary people, this controlled inflation also silently takes away the purchasing power of their accumulated wealth in the long run. This system discourages people from saving and forces them to make unnecessary spending or risky investments for fear of the value of the money falling, On the other hand in the Bitcoin or deflationary system, people are encouraged to get out of debt based consumerism and save, which is more sustainable in the long run. Also deflation is not the only reason behind Japan's economic stagnation, their aging population or demographic crisis is also a big reason, In my opinion a healthy economy should not be based on constantly creating debt, but on real savings and sustainable production.

[abhiseshakana]

I've lived my whole life in a country with an inflationary economy, and it's the worst thing in the world. I don't recommend it—not even with 2% inflation, or anything like that. A stable economy, for me, is a deflationary one. In fact, Bitcoin's model is perfect.

Notice that Bitcoin has a limited supply, which only makes the currency more valuable over time. By limiting the supply, wealth increases because the value increases. Like everything, there are downturns, but then there are recoveries. In the end, a deflationary economy is much more effective because it eliminates many of the deficiencies and vulnerabilities that the current system has.

From what we learn and many believes during decades that we need measured and controlled inflation to avoid falling into a spiral of economic paralysis caused by deflation and i think it is a core doctrine steadfastly held by central bankers, international financial institutions, and global policymakers which we know as global elite. They have same interest to avoid massive deflation because deflation can diminished their assets value and increase the debt burden.

As solution global elit create inflation as mechanism to preventing destructive deflation. We know that today economy over reliance on debt, inflation make global debt system running, so it is not only an economic error. So monetary system designed in such a way that moderate inflation becomes the mechanism that keeps the debt and asset ownership system alive and benefited.

Simple explanation deflation makes debt feel larger and inflation makes debt feel smaller. Lets make simulation if we have USD 10,000 debt. On deflation period when prices of goods and income tend to fall, we need extra effort to pay USD 10.000 and it's harder to pay (the real value of the debt rises). On inflation period, prices and income tend to rise, USD 10,000 debt remain the same but but relatively lighter due to salary increase (the real value of the debt falls). thats why deflation can create serious problem because debt does not decrease when prices and income fall. With keep the moderate inflation asset owners are rewarded anf leave the cash savers punished.

[Maslate]

Controlled or predictable level of inflation is by far better than deflation. Deflation can be very deceptive it might look ok for our wallets and balances but in real sense it kills our economy, make businesses suffer and hinder availability of jobs.

Controlled inflation gives consumers the choice to buy their needs early which keeps business running without having much persons hoarding their cash. It also encourages investments and increased wages. I also think borrowers finds it much easier to pay back loans during this kind of economy.

Couldn't agree more. While deflation can be more tempting to hear because prices are dropping low while the purchasing power turns high, but it could be a huge threat to the national economy in the long run. When the business market is no longer making revenues, the country's economy itself will drop and might end up shutting down if the country's government cannot save from the uncontrolled deflation.

Controlled inflation is always better than deflation. But too much inflation is never good at all, negative results are equally the same with deflation.

[TedMosby]

I think it depends on the country, like how powerful the fiat currency of the country is. For example, inflation may be good when you can still import from countries with weak fiat currencies. It may be easier to absorb inflation with a strong economy and currency. Deflation could be bad if you are the one who lives in a country with a weak economy and currency.

In general, I prefer stable and predictable inflation. People will tend to spend earlier, more frequently, make the economy run well, and businesses also can have a better long term plan when inflation is more predictable. I don't like it when prices spike too high and that makes us readjust everything.

Speaking of deflation, Bitcoin's fixed supply, high demand, and decreasing block reward mechanism make it deflationary, right? I think that's also why BTC struggles to work as widely as a medium of exchange. Users tend to hold it, delay their spending, hoping they can get more from the deflation. CMIIW.