3 ms·
If you hit too much disinflation/deflation things can go sour pretty quickly. This is a bit exaggerated in this model as there are only 10 businesses and there
by BenoitEssiambre 4y ago
If you hit too much disinflation/deflation things can go sour pretty quickly. This is a bit exaggerated in this model as there are only 10 businesses and there can be a domino effect as 10% of the economy fails at a time. You can prevent it if you manage to counter deflationary pressures fast enough.
It helps to slowly creep up interest rates up when the economy is going well so you have more space to lower them aggressively during shocks.
- ThalesX 4y agoCool project, congrats on putting it out in the wild. > You can prevent it if you manage to counter deflationary pressures fast enough. Iirc, it was a matter of < 10 months from good to gutter.