3 ms·
Proces will go down when wages fall, interest is negative, rents are negative, and there's a sledge of bankruptcy. Those are your returns on factors of producti
by throwaway167 3y ago
Proces will go down when wages fall, interest is negative, rents are negative, and there's a sledge of bankruptcy. Those are your returns on factors of production. In the short term, choose 3 to 4.
Or when there's a massive technological shift but people don't change what they buy, which would be mass unemployment.
These are the conditions for a falling general price level. Do you really want that?
Inflation as a rate means change on the last period. Usually reported as an annual change. For the inflation rate to fall doesn't mean prices do. 0% means zero change. For price reversion you'd need negative inflation, deflation, of a large amount.