• Neato@kbin.social
    link
    fedilink
    arrow-up
    6
    ·
    1 year ago

    Exactly. And deflation incentivizes hoarding money. Inflation is bad but deflation can be worse. If no one spends money because you’re literally making money by sitting in it the economy would crumble.

    In a bad case the government would have to slash interest rates, maybe even slightly negative.