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Chinese economy expected to have slipped into deflation as recovery falters (www.theguardian.com)
submitted 3 years ago by to c/worldnews@lemmy.ml
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[–] 0 points 3 years ago (1 child)

It can be good if you have cash and need to buy things. It can be bad if your retirement savings is a second or third condo that is dropping in value.

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  • [–] 2 points 3 years ago (1 child)

    it seems the ideal situation is stagflation, no-one is worse off. i have no idea why a small amount of inflation is considered ideal

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  • [–] 8 points 3 years ago (1 child)

    i have no idea why a small amount of inflation is considered ideal

    Because it encourages money to participate in the economy. If an economy gets stuck in a deflationary cycle, it encourages people to stop putting their money into the economy to invest or to act as a way to get people to make purchases sooner.

    That can be ideal if you are anticonsumption, but not so much if you are relying on a low unemployment rate to help keep people happy.

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