CodePsychology on Nostr: I think that's the beauty. If economy is not growing, there is no deflation. So if ...
I think that's the beauty. If economy is not growing, there is no deflation. So if people are not spending, economy will be slower, deflation will be either slow, or not even there.
Deflation only occurs if money supply is fix, and economy is expanding. But it won't expand, if people are hoarding money. So to say:
Economy is growing -> deflation occurs -> people start to hoard -> deflation dissapears -> people spend again -> economy starts to grow again -> repeat
Published at
2023-10-19 21:41:47Event JSON
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"content": "I think that's the beauty. If economy is not growing, there is no deflation. So if people are not spending, economy will be slower, deflation will be either slow, or not even there.\n\nDeflation only occurs if money supply is fix, and economy is expanding. But it won't expand, if people are hoarding money. So to say:\nEconomy is growing -\u003e deflation occurs -\u003e people start to hoard -\u003e deflation dissapears -\u003e people spend again -\u003e economy starts to grow again -\u003e repeat",
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