r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 9h ago

Meme needing explanation Petah?

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u/Grouchy_Theme1461 9h ago

bruh u gotta explain it

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u/nebileyim_ben 9h 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/Terpcheeserosin 8h ago

Why does things costing less make people buy less?

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

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u/Zealousideal_Act_316 7h ago

Because anything you buy today will be cheaper tomorrow, meaning people hold off on buying, for eternity.