🇳🇱
That makes no sense.. If i have 100$, and there is an investment that right now costs 100$ and goes up by 1%... If my money is gaining value that means everything else is going down in price.. so if my money gains 10% value that means that in a year my investment is worth 91$ instead of 100$. How does that encourage me to invest? If anything I should hold onto the 100$ and id have 9$ more in a year than if I invested.
Obviously no, deflation does not encourage more investment, the opposite.
if you're talking about a fixed term, fixed return investment like a CD, then if the money gains value, even if you get back only $101 at the end of a fixed term investment, your money (as you just said) under deflation *gained* value so your purchasing power of that $101 is correspondingly higher than the $100 you invested. in fact you did not lose anything.
if you're talking about stonks, bonds, and money market, those don't have a fixed value and your investment would increase accordingly
We were talking about investments, not just putting money in a bank and sitting on it.. but yes you proved my point, deflation encourages hoarding of money in banks or under your bed in a sock or wherever. Inflation encourages investment of it in things that generate more wealth.
if the currency is holding and gaining value, that's a sign of a strong economy
if people are investing in fake stuff like stocks, derivatives, collateralized debt, and all the other weird fake money instruments they've invented, this is not adding any real value to the economy or increasing the wealth of the majority of individuals
i would argue that all interest is predatory and it encourages me to do stuff like buy land intead of sitting on savings
