Deflation as a Recipe for a Prosperous Europe

In the following text we will analyze the problems stemming from incorrect definitions of inflation and deflation.Then we will put forth a taxonomy of deflation, which will enable us to abandon the confused quot;macroquot; view of the deflation issue and to show the flawed comparison between two evils: the smaller one - inflation, and the bigger one - deflation. The analysis will enable us to demonstrate the complete impossibility of justifying an quot;antideflationaryquot; (i.e. inflationary) policy from an economic point of view, and to prove the thesis about the grave and disastrous consequences of state interventions in the field of money. Short case-studies will shed light upon the main monetary problems in the U.S. and Argentina, and it will also help to understand the necessity of a methodologically anchored, and therefore economically sound, analysis of the deflation problem