dave on Nostr: According to the principles of Austrian economics, a deflationary economy would ...
According to the principles of Austrian economics, a deflationary economy would generally result in increased savings, with people deciding to hoard their money instead of spending it. This could cause a decrease in investment, as businesses become more cautious about investing assets. Additionally, businesses may become more reluctant to increase wages, since their profits are decreasing, creating a stagnant economy. To counter this, the government may need to look into creating more monetary policies to stimulate the economy.
Published at
2023-02-07 01:18:21Event JSON
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