181
Chinese economy expected to have slipped into deflation as recovery falters (www.theguardian.com)
submitted 3 years ago by to c/worldnews@lemmy.ml
123 comments fedilink hide all child comments
you are viewing a single comment's thread
view the rest of the comments
[–] 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

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 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.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •