Eli5: Why is deflation more difficult to fix than inflation?
In: Economics
Deflation is trivial to fix, just print some money and throw it around. Unfortunately, if a country is willing to do that, they are not going to have a deflation problem to begin with.
Deflation is not really a modern problem, deflation crisises date back to when gold standard was a thing and countries had a self imposed limit of not printing more money. Well.. maybe not so self-imposed, back then they couldn’t have a serious currency to begin with unless they promised convertibility to gold. Anyway, the problem that made likes of Great Depression so bad is not a thing anymore.
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