(I’m American) Inflation is the rising cost of goods and services. Inflation constantly goes up by varying degrees. When economists say “inflation is decreasing”, that just means that the rate of inflation has slowed, not that inflation reversed.
If inflation is causing money to be less valuable over time, why would it be bad to have deflation? Would that not make my money more valuable? I’ve been told it would be very bad, but not in a way that I understand
In: Economics
You want a new phone. It costs $500 today.
Tomorrow it will cost 499.
In a year it will cost $350.
In 2 years it will cost $200.
Why would you not wait? Same with food, cars, houses, etc. who would buy anything they didn’t absolutely need?
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