Japan’s economy has been experiencing a deflation and there has even been 0% interest (sometimes in the negatives, why is this a bad thing?
In: Economics
Because in our current economic understanding bigger numbers are good, smaller numbers are bad. A set level of inflation means the GDP will grow by that much before any other effects.
If I sell you a table for 100 bucks this year and sell you another one for 110 bucks next year just because inflation, we contributed to the gdp growth by %10 without doing any improvements to anything.
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