Why Does Deflation Occur Rarely In The Real World? - Politics - Nairaland
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| Why Does Deflation Occur Rarely In The Real World? by Splazy(m): 9:56pm On Apr 15, 2021 |
Countries of the world do exprience either Deflation or Inflation..but why is it that economics of the world rearly experience deflation. |
| Re: Why Does Deflation Occur Rarely In The Real World? by alfasexy: 10:29pm On Apr 15, 2021 |
Population growth vs limited resources. 1 Like 1 Share |
| Re: Why Does Deflation Occur Rarely In The Real World? by omonnakoda: 10:49pm On Apr 15, 2021 |
Governments do not want deflation and do many things to discourage it Deflation simply means that prices are falling and people are reluctant to spend because they believe the price will be lower tomorrow. If prices are falling then businesses are either not growing or losing money Companies will not invest in factories etc in such a scenario where people are hoarding their money waiting for prices to fall further. A little inflation is believed to be good for the economy as it leads to investment optimism and growth. The issue is getting the balance right so it is not "too much" |
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