Low inflation might be the first step towards deflation. Many economists would argue that deflation is a worse situation for the economy because it leads to a sharp drop of consumption and therefore a huge recession follows?
Not necessarily. Velocity is one of the core components of inflation. Policies that target this would change the risks
For example theoretically (hand waving a million variables) a wealth tax for single-payer healthcare encourages more movement through regular goods and services
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u/StuartMcNight 8h ago
Low inflation might be the first step towards deflation. Many economists would argue that deflation is a worse situation for the economy because it leads to a sharp drop of consumption and therefore a huge recession follows?