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> A growing economy increases standards of living. The fact that a t-shirt costs $10 now that used to cost $20 10 years ago So what you're saying is that infla
by dualogy 13y ago
> A growing economy increases standards of living. The fact that a t-shirt costs $10 now that used to cost $20 10 years ago
So what you're saying is that inflation leads to deflation -- did I get that right?
- andrewfong 13y agoI think the above was referring to dollar amounts in real terms, not inflation or deflation-adjusted -- i.e. deflation will result in both less nominal and less real growth.
- anonymoushn 13y agoIt's nothing that complex. a_c_s has just suggested that inflation (the rising price of goods relative to the dollar) is good because it allows one to buy more with the same money (the falling price of goods relative to the dollar, not to be confused with deflation, which would of course only benefit the rich).