(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 means you money is worth more tomorrow than it does today…
ie. everything gets cheaper day by day…
if that is the case, why would you buy anything today? the more you wait you less you have to spend… everybody would do this, therefore the economy would grind to a standstill as everyone is hoarding money and not spending it…
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