There is a myth in mainstream economics that stable prices are necessary for the economy. The idea of price stability became popular in the 1920s, during a period known as the Roaring Twenties.
I recently talked to a friend who questioned the importance of inflation. He mentioned that inflation could be helpful in the event of a major crisis. He specifically talked about natural disasters.
Markets are tumbling across the board. Stocks, commodities, gold, bitcoin and other assets are all tanking. The S&P 500 had its worst-performing beginning of the year since 1939. We are officially in a bear market.
There has been growing concern about the sustainability of sovereign debt in the United States and around the world. While the United States has never directly defaulted on its debt, many people are wondering whether a US debt default might be on the horizon.