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/nebileyim_ben 7h ago

its deflation, prices keep falling over time.

japan experienced long periods of deflation which is hurt spending and as a result affected economic growth.

its super hard to fix that bcs of liquidity trap.

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u/UmpireDapper1757 7h ago

Japan never suffered from deflation. The CPI stayed roughly flat for about 25 years. The most deflationary period, from like 1998-2013 saw average deflation of like 0.3%, which had a trivial effect on spending

https://fred.stlouisfed.org/series/JPNCPIALLMINMEI

Switzerland had similar CPI data from 2009 to 2020, with no ill-effects

https://fred.stlouisfed.org/series/CPALTT01CHA657N