Lets say the government gives anyone in the US a stimulus of $500, stores can now ask more for their products knowing people have more to spend, but the prices stay at a higher point so the prices are inflated and the overall value of the currency deflates.
Did you hear your elderly talk about what you could buy for a dollar in their days, and how worthless a single dollar is today? Thats the same principle.
the person your responding to is proposing an idea to curb defaltion. you saying that would cause inflation, which is exactly what we would would to counteract deflation. whats the problem?
yeah. we want a little inflation for the economy to work properly. if we have too much we can curb it. thats easier to do than curbing deflation. whats the problem with that?
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u/DesignerMaximum1342 8h ago
Lets say the government gives anyone in the US a stimulus of $500, stores can now ask more for their products knowing people have more to spend, but the prices stay at a higher point so the prices are inflated and the overall value of the currency deflates. Did you hear your elderly talk about what you could buy for a dollar in their days, and how worthless a single dollar is today? Thats the same principle.