We hear a lot from economists about we shouldn’t pay off the national debt because the result would be deflation and deflation is bad for the economy.
Yet inflation and deflation are simply the increase or decrease in the money supply relative to amount of goods and services. So in that sense prices never change only the relative value of money. With that definition, the true definition in mind, a three year old can reason out the consequences of either.
It should also be pointed out that the greatest period of sustained economic growth in history, in the U.S. between 1865 and 1910 was generally deflationary period as the U.S. Government retired the Civil War debt. Thereby decreasing the money supply and raising its value relative to goods and services.