They're functionally the same thing, but it's all relative to what you're comparing the money to. Eggs in America are the same as eggs in Canada, but they cost different amounts based on how much the respective dollar can buy. If you know the American dollar is crashing, it might be worth hoarding money while it's worth less because people are more willing to let it go, then it will be worth more once the dollar recovers and becomes worth more. During that whole thing, the Canadian dollar remained steady and continued to grow in value. Canadians were not incentivized to hold their money, so more eggs were sold in Canada because people wanted to buy asap since their dollars would be worth less the longer they wait to spend them. Americans bought less eggs because they were holding out for the dollar to start increasing in value so they don't miss out on potential gains/even cheaper eggs. Continuous, steady inflation incentivizes spending, while deflation incentivizes holding.
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u/Terpcheeserosin 8h ago
Why does things costing less make people buy less?
If wages stay the same, shouldnt people just buy the dip?