(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
When deflation happens, the dollar is losing value. This means any holdings you have are losing value.
So what do you do? You sell off those holdings for less than you got them for.
What does this do? Well, it causes deflation. Go back to step one and repeat.
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