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?
You snap your fingers. Everybody can afford Salmon and steak overnight. Salmon goes extinct within six months and the world’s forrests are gone because the entire industrial capacity of the world turned them into pasture. Everybody dies.
The law of unintended consequences is always smarter than us
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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?