(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
Let’s say you are looking at a new car, and today its 20k nex week it will be 18k when are you buying it? Probably next week. Well in 2 weeks from today it’s going to be 17k going to wait the extra week? What about when the car drops to 15k after a month?
Prices get sticky everyone is waiting for prices to drop so the economy stops moving entirely, Keynes actually said deflation was good because stuff gets cheap but when people stop buying because their waiting for a sale they dont even buy on the sale because it will go even more on sale
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