That’s assuming deflation was the cause of that instead of simply being a symptom of the collapse of the financial system. Also, in a deflationary environment, money sitting in a savings account wouldn’t necessarily collect interest, in fact the interest rate for a savings account could even be negative. Either way, a healthy investment environment would provide much greater returns than a 2% increase in value of money sitting in an account. Consumers continuing to buy things means there are clear business opportunities.
That’s assuming deflation was the cause of that instead of simply being a symptom of the collapse of the financial system. Also, in a deflationary environment, money sitting in a savings account wouldn’t necessarily collect interest, in fact the interest rate for a savings account could even be negative. Either way, a healthy investment environment would provide much greater returns than a 2% increase in value of money sitting in an account. Consumers continuing to buy things means there are clear business opportunities.