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Why would the Feds want inflation and not a flat line?
by bsilvereagle 12y ago
Why would the Feds want inflation and not a flat line?
- wwwwwwwwww 12y agoto give investors a more significant incentive to invest rather than save money in savings accounts may as well be dead money as far as the economy is concerned
- bsilvereagle 12y agoThat makes sense. I guess deflation is a huge no-go since that means a savings account is a risk-free profiting investment where stocks etc are not risk-free.
- grantbachman 12y agoBecause 2/3 of our GDP is made up of consumer spending. By making your cash worth less tomorrow than it's worth today it incentivizes us to spend. If we don't spend our money the economy grinds to a halt in a hurry.