How come we experience so much more inflation than deflation? in other words, why does our buying power decrease far more often than it increases?

Melatonin@lemmy.dbzer0.com · 3 years ago

How come we experience so much more inflation than deflation? in other words, why does our buying power decrease far more often than it increases?

poVoq@slrpnk.net · 3 years ago

Central banks have a target inflation of about 2% and actively try to prevent deflation (much more so than inflation). In general moderate inflation is a good thing as it puts some pressure on keeping the money in circulation instead of hording it.

𝕾𝖕𝖎𝖈𝖞 𝕿𝖚𝖓𝖆@lemmy.world · 3 years ago

The dollar got about 25% stronger…during the Great Depression. $100 in September 1929 had the same buying power as $79 in September 1935. Systems built on the concept of infinite growth do not like to shrink.