4 ms·

you are right, and why deflation better than inflation?

• jypepin 9y ago
  Well, inflation makes the money you have in the bank loose value over time. In extreme examples you have countries like Venezuela and results are bad: people struggle to keep their buying power, companies are leaving the country, imports become way more expensive, etc. I don't think there is a real world example of a country with deflation, so I don't know if the opposite would be true or what real consequences would be, but you can expect the opposite to happen.