Does anyone know of any good book/paper/article comparing the inflatory and deflatory economies? I would like to know if there are any scientific publications on the matter that are approachable to non-economists (I`m a computer science student). I need it as a source for background information for my master thesis.

  • This seems off-topic, since there is nothing explicitly "Bitcoin" about the question. – eMansipater Oct 7 '11 at 13:42
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    Agreed. Perhaps ThePiachu should help the Economics SE site get off the ground? – David Perry Oct 7 '11 at 14:27
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    @eMansipater well, it is a bit off topic, as it doesn't involve Bitcoins directly, but there is a lot of talk about "Will deflation destroy Bitcoins" and so forth, so deflation economy is related to Bitcoins. – ThePiachu Oct 7 '11 at 15:09
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    As I said, you could help it get off the ground. It's on Area51 in the commit phase. Not much help to you right this second but a future resource is better than no resource at all. If it helps right now, Wikipedia has some good historical examples of deflation, including a recent one from Ireland which features mild inflation and is not regarded negatively. For the effects of inflation... just look around, chances are you live in it. – David Perry Oct 7 '11 at 15:39
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    As a general rule, though, it's not the choice between inflation/deflation that ruins economies, it's the RATE of either. Massive hyperinflation has led to the laughing stock that is the Zimbabwe dollar just as massive deflation led to the Great Depression in the US. Conversely, most every nation lives happily with a slight constant inflation, while Ireland has been deflating by 6.6% per year quite happily since 2009. The UK even saw 10-15% deflation rates in the 20's and 30's with only moderate negative effect (compared to the US' Great Depression anyway). – David Perry Oct 7 '11 at 15:47

This topic on bitcointalk forum might be a good place to start: Deflation and Bitcoin, the last word on this forum

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