If inflation is bad, and deflation is worse, then what is the best possible scenario for a country(that suffers from inflation)’s economy?
In: 8
Inflation isn’t bad.
Rapid inflation is bad.
The us had roughly 8% inflation in just one year.
That is huge. Most economist say 1-3% is healthy.
The idea is to not encourage people to horde money.
If you have deflation you are encouraged to not spend money. Rapid inflation you are encouraged to spend every dime you get immediately and things like buying inventory for shop keepers becomes incredibly risky.
Deflation would be catastrophic economically.
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