“‘Historically, there is no reason to fear deflation,’ Nobel Laureate Thomas Sargent explains to Germany’s Wiwo.de, ‘we all benefit from lower prices.’ That central banks pursue an inflation rate of around 2%, Sargent blasts, is because they consider it their job to ‘make bad debt good debt,’ adding that inflation is ‘a major redistribution machine – reducing the real debt burden for the benefit of creditors and devaluing the assets of the creditors.’ A return to a gold standard,he concludes, to prevent governments and central banks from limitless money-printing ‘would not be foolish.'”

http://www.zerohedge.com/news/2013-11-16/nobel-winner-dares-go-there-no-reason-fear-deflation-greece-may-benefit-gold-standar

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