(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
It happened in Japan post bubble economy and during the Great Depression – people consume less, prices fall, and companies reduce investment in new products to sell which leads to fewer jobs. https://www.frbsf.org/research-and-insights/publications/economic-letter/2009/03/risk-deflation
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