: Why would deflation be bad?

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(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

37 Answers

Anonymous 0 Comments

I think the issue that’s causing you to talk past people here is the idea of microeconomics vs macroeconomics. You’re talking about your personal life and what decisions you might make or how you would directly interact with the economy. This is very different from the large scale economic activity of an entire country.

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