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How come we experience so much more inflation than deflation? in other words, why does our buying power decrease far more often than it increases?
(lemmy.dbzer0.com)
this post was submitted on 22 Jul 2023
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All fiat currencies are designed to prevent hyperinflation and deflation.
Why is deflation bad for an economy? It encourages prior to hold off on spending money as money tomorrow is worth more than money today. It also means people are less likely to invest money, as you can get better returns by saving your money under your mattress.
So, save nothing? Why would you save anythjng if your dlls are worth nothing the next day? Spend it all, who wants dlls if they are worth less tomorrow?
Inflation doesn't make money worthless, just worth slightly less.
Worthless overtime