Central bankers in countries that have fallen into recession or are on the precipice have suffered seizures over the fall in oil prices. Most are mainstream economists or groupies who think that falling oil prices will deepen the plunge in prices, which they consider the ultimate evil, even while most consumers are cheering them.
Of course, mainstream economists will fall back on the old apologetic that says what is good for individuals can be bad for the nation as a whole. They claim it is a paradox and those types who love Eastern mystic nonsense like “the sound of one hand clapping” or “global warming will cause another ice age” love such inscrutable sayings.
The truth is that it’s not a paradox; it’s a contradiction. Mainstream macro contradicts a large part of the principles of microeconomics. And since micro has the firmer foundation that means a lot of macro is pure nonsense. Now mainstream macroeconomists aren’t dummies, so why do they love inflation when the rest of the sane world hates it? It’s because they know what inflation does: it transfers wealth from savers to borrowers (and they hate savers) and from workers to employers.