You contradicted this in your story. Yes, we want productivity increases to reduce prices, yes, we want the excessive greedflation price rises to be rolled back. Yes, moderate deflation is good for consumers and does not harm workers if the unemployment rate is low. Yes, I want the value of my pension to stop being eroded by inflation. Deflation/inflation anywhere between -2% and +2% a year is fine. It is pointless of the Fed stimulating the economy to prevent negative interest rates if they are 2%. They do this because our addiction to growth. If the numbers don't go up they think the sky is falling and same for the robber barons. If we have 2% deflation and bottom lines are flat we still have 2% real growth. If your pay is cut 1% but we have 2% deflation you still got a 1% real pay rise.

The value of cash in a safe increase 2% a year if we have 2% deflation. For years we suffered with savings accounts and CD paying interest at less than the rate of inflation. This is a disincentive to savers. People with not much money were forced to lose value or invest it in the stock market or crypto or anything that might make more than the rate of inflation but that involves the risk of loss that is not there it you invest in a savings account or CD. The zero-risk rate of return should not be negative. Monetary policy that pushes the zero-risk rate of return negative is pure evil and a joy to bankers and brokers.

TEK