: 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

If i have money to invest, and i can get a guaranteed return by just having it exist then theres absolutely no reason to ever invest that money. This is very bad for the economy

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