447
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?
(lemmy.dbzer0.com)
this post was submitted on 22 Jul 2023
447 points (96.7% liked)
Asklemmy
43945 readers
838 users here now
A loosely moderated place to ask open-ended questions
Search asklemmy ๐
If your post meets the following criteria, it's welcome here!
- Open-ended question
- Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
- Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
- Not ad nauseam inducing: please make sure it is a question that would be new to most members
- An actual topic of discussion
Looking for support?
Looking for a community?
- Lemmyverse: community search
- sub.rehab: maps old subreddits to fediverse options, marks official as such
- !lemmy411@lemmy.ca: a community for finding communities
~Icon~ ~by~ ~@Double_A@discuss.tchncs.de~
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
No expert, but another advantage of inflation is to create incentives to invest/spend money. With a deflation you are rewarding people that keep their money in a pillowcase. Which is probably bad.
Additionally there probably are some control structures to increase or decrease inflation, but they will bring their own cost with them. So controlling Inflation may be not controllable enough/not worth it to do so.
Bitcoin is deflationary and why it has failed as an alternative currency. Nobody wants to spend it. HODL.