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Chinese economy expected to have slipped into deflation as recovery falters
(www.theguardian.com)
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this post was submitted on 08 Aug 2023
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it seems the ideal situation is stagflation, no-one is worse off. i have no idea why a small amount of inflation is considered ideal
Because it encourages money to participate in the economy. If an economy gets stuck in a deflationary cycle, it encourages people to stop putting their money into the economy to invest or to act as a way to get people to make purchases sooner.
That can be ideal if you are anticonsumption, but not so much if you are relying on a low unemployment rate to help keep people happy.
that's a good explanation, thanks