“Flation” Anyone?

Inflation is probably not that much appreciated by the public at large where costs go up faster than wages.  The GIC rollover at a couple of percent buys no more next year as it did this year and likely a little less if taxes take a bite.  I’m not qualified to debate all the reasons why it’s both healthy and necessary (within certain parameters) but would opine that it is the lesser of the “flation” evils.
What are they?
Disinflation is when the level of inflation is on the decrease.  This could be good or bad but as I penned a month ago, the goal of the Bank of Canada is to keep inflation at a level of 2% (give or take) so they pull the levers in favour of achieving and maintaining this target range wherever possible.
Deflation is when inflation is negative and costs are going down.  This has the impact of increasing the purchasing power of those with money.  Great technological advances could make this possible for shorter periods of time as in the 19
th
century.  To a degree it explains why it’s possible to buy a laptop computer or many electronics today for a fraction of the cost of when Gates and Jobs were nerdy teenagers with a dream.  The flip side is that borrowed money becomes more difficult to repay as ultimately wages and government revenues go down.  Given government and individual’s current debt and propensity to borrow I wouldn’t think this would be welcome.
Stagflation is a vicious cycle.  It is characterized by high unemployment and low economic growth coupled with high inflation.  In order to deal with high inflation those in charge need to reign in the money supply to preserve the value of currency.  However, the very policies designed to do this tend to weaken the economy and create more unemployment.
Hyperinflation is rising and accelerating inflation in an economy causing the price of everything to rise.  Confidence is lost as currency buys much less in the months ahead.  The general population is trapped and those with wealth seek alternatives often outside of the economy they live.  A lot of doomsayers have been forecasting this for the U.S. as they pile on mountains of debt.  They’ve yet to be proven to be right.  Let’s hope it stays that way.
Your choices again are; inflation, disinflation, deflation, stagflation and hyperinflation.  Pick one.