If inflation lowers demand, would that not eventually offset inflation naturally without government intervention?

1.00K views

If inflation lowers demand, would that not eventually offset inflation naturally without government intervention?

In: 42

15 Answers

Anonymous 0 Comments

Inflation doesn’t lower “demand” so much as it lowers the “movement” of a product or the “sales” of a service.

So, people still need/want the good/service but are just waiting until the prices come down. Which probably will cause the prices to inflate again.

You are viewing 1 out of 15 answers, click here to view all answers.