(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
Deflation is bad because it causes people to horde their money which is terrible for the overall economy if no one is buying goods or spending money.
Why would I buy X item for Y dollars today when I can just wait six months and the same item will be 30% cheaper?
Latest Answers