Petah?

[u/Melodic_Judge_129]

[u/Grouchy_Theme1461]

bruh u gotta explain it

[u/nebileyim_ben → u/Grouchy_Theme1461]

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.

[u/Terpcheeserosin → u/nebileyim_ben]

Why does things costing less make people buy less?

If wages stay the same, shouldnt people just buy the dip?

[u/dollar322 → u/Terpcheeserosin]

With deflation, the money in your bank account will be worth more next year, while the car in your garage will be worth less.

[u/Terpcheeserosin → u/dollar322]

But I need a car

[u/dollar322 → u/Terpcheeserosin]

same :(

[u/Terpcheeserosin → u/dollar322]

:C