3 ms·
A small amount of inflation (1-2% per year) is required or else you'd get deflation. Deflation is an almost guarenteed death spiral for an economy as everything
by daemoens 4y ago
A small amount of inflation (1-2% per year) is required or else you'd get deflation. Deflation is an almost guarenteed death spiral for an economy as everything grindes to a halt because not spending makes you richer.
- aaaaaaaaata 4y agoThis is something you might hear in a grammar school economics class, or a Federal Reserve presentation, but I don't think it's a hard fact. Why are you presenting it as such?
- daemoens 4y agoBecause it has occurred multiple times in multiple countries. It is a hard fact.