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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
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Tiny short term changes either way will not be enough to drastically alter people's behavior. If those changes are long term and predictable they will absolutely change people's behavior. 2% may not be much year over year, but over a 30 year mortgage you can expect to take a bath on any house you buy, even with 1% interest rate. And people, rich and poor, do horde cash when they think that returns are going to become negative. In a very mildly deflationary world this happens much more often than in an inflationary one.
Just thought you'd want to know that you probably meant "hoard" as in "accumulate (money or valued objects) and hide or store away" instead of horde, which is a crowd or equivalent.