37 ms·
Those formulations are indeed more common, but also equivalent to the ones I gave: - "Loss of purchasing power" is a fancy way of saying "people don't want you
by kqr 4y ago
Those formulations are indeed more common, but also equivalent to the ones I gave:
- "Loss of purchasing power" is a fancy way of saying "people don't want your money as much as they used to", i.e. low demand for cash.
- Similarly, "economic decline during which trade and industrial activity are reduce" are complicated words for "people more and more prefer to hold on to the money they have rather than exchange it for other stuff", i.e. increasing demand for cash.
The reason I phrased it the way I did is that it helps highlight how a recession is the way out of inflation.