r/PeterExplainsTheJoke 8h ago

Meme needing explanation Petah?

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u/nebileyim_ben 8h ago edited 8h ago

its japans economic trap, worse than inflation.

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u/Grouchy_Theme1461 7h ago

bruh u gotta explain it

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u/Poland-lithuania1 7h ago

So low inflation can lead to deflation, which is when the value of money increases, which makes saving money much more attractive, which leads to lower spending, increasing the value of money, but the lower spending means the economy doesn't expand.