4 ms·
It rewards saving, keeps interest rates low, and makes people want to accumulate productive assets rather than natural resources, property, or other hedges. Pe
by lackbeard 18y ago
It rewards saving, keeps interest rates low, and makes people want to accumulate productive assets rather than natural resources, property, or other hedges.
People won't accumulate productive assets, they'll horde money, which will contribute further to declining prices. This will put an economy into a deflationary spiral.