RE: Myth: Inflation Bad, Deflation Good
You are viewing a single comment's thread:
The reality is the downside of the business cycle creates deflation. As we can see, this is called a recession. During that period, prices drop. This leads to job loss, defaults, and bankruptcies. It is not a fun time.
Wow, I did not know that drop in prices caused recession.
0
0
0.000
It is more than just a drop in prices. But that is a sign. When the economy is contracting, price increases cannot be absorbed. Wages are stagnant for those who remain employed. Many are laid off causing ever greater impact.