In a country drowning in debt, both public and private, limits on the ability to borrow money could be a welcome development. It all depends on how much deflation discourages people from lending money. This is derived from the expected rate of return of the borrowed money vs the current rate of deflation.
This is a statement of political ideology and not one of settled fact. If the comparison you're making is to the USD, our borrowing costs are so low that there are lots of activities for which short-term potential inflation is more than offset by gains to the economy. This isn't voodoo macroeconomics; it's no more complicated than the decision between paying down a home mortgage and investing that money for a return.
This would be a limit on borrowing money for EVERYONE, regardless of their ability to pay it back. Lots of people overeat, so I guess we should jack up the price of food.
What you have just proposed is an increase in the cost of starting a new business, no matter how good an idea is. Just because the banks are bad at determining who can and can't pay back a loan doesn' mean those who CAN should pay a tax.
So inflation isn't a tax on people who save their money? Or, by artificially preventing deflation through a central bank we aren't subsidizing the cost of borrowing through this tax?
