hi doma,
i am not so manichean about economics. the value of different features of the economy depends on circumstances.
i generally think a rate of inflation between 2 and 4% is around the best available for most advanced economies. but after a period of low inflation/deflation, i think the top line might be pushed up a point and a half for a few years before you try to contain inflation under 4% again.
in the euro zone, the needs of germany and mediterranean europe are different but they are stuck with the same currency. the germans have insisted on a tight monetary policy during this crisis. this suits them and has allowed them to avoid pain. but this has caused suffering in greece, spain, portugal, ireland and italy. so low inflation in germany and a depression everywhere else.
a qe policy eases the crisis in the latter group but causes inflation in germany. so it isn't great news for the germans. they'd be better off with their own currency and continuation of tight monetary policy. but it is a relief for everyone else.
i get the impression you think a 0% inflation rate is the charm.
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