I'd like to rephrase the theme of Jessica Hagy's Shiny Object! Must Get! graphic in economic context: technology assimilation refutes the deflation bugbear in the absolute sense.
How?
How?
This wonderful quote from Bloomberg's Matthew Lynn (Deflation Theory Is Lemon We Have All Been Sold), [bold emphasis mine]
``Everyone knows that a computer or an iPod will be both better and cheaper in six months. And people really want one right now. Torn between those two impulses, plenty of shoppers go out and buy computers and music players. It is true in the electronics industry, and, once they get used to falling prices, it will be true for other industries as well."
Moral: Prices are valued subjectively and relatively.
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