Question: Why is sustained disinflation typically a bad thing? When goods become cheaper for a long time, even those who make less money become relatively richer
Why is sustained disinflation typically a bad thing?
When goods become cheaper for a long time, even those who make less money become relatively richer
Disinflation is not typically thought of as a bad thing by economists
Consumers may delay spending, which means demand decreases. When demand decreases, business may cut production, lay off workers, or reduce wages.
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