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With deflation (i.e. prices drop so the purchasing power of $100 rises over time) you lose if you're selling a product/service with fixed costs or paying off a
by tagawa 13y ago
With deflation (i.e. prices drop so the purchasing power of $100 rises over time) you lose if you're selling a product/service with fixed costs or paying off a loan while your salary is dropping. With high inflation (i.e. prices rises so the purchasing power of $100 drops over time) you lose if want to buy a certain amount of products/services and your income is not rising as fast. I'm not an economist but both are bad.