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?
Also, deflation is very much a symptom rather than the disease. There's been no economic situation in history where causing consumer prices to stop falling has caused an economic recovery. There have been dozens of cases where economic growth and recovery has been enjoyed with deflation
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u/StuartMcNight 9h 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?