Growth leads to inflation. An economy that is seeing very low inflation, or deflation is stagnant. Deflation is an incentive not to spend across the whole economy because you expect your money to buy more in the future than it does today.
Also, there are tools to effectively lower inflation in economies that control their currency, even though they are painful. There isn’t any real silver bullet to solve stagnant growth.
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u/Savorypensioner 7h ago
Growth leads to inflation. An economy that is seeing very low inflation, or deflation is stagnant. Deflation is an incentive not to spend across the whole economy because you expect your money to buy more in the future than it does today.
Also, there are tools to effectively lower inflation in economies that control their currency, even though they are painful. There isn’t any real silver bullet to solve stagnant growth.