Re:The Covid-19 pandemic is forcing a rethink in macroeconomics
by littlestymaar on Saturday July 25, 2020 @06:04AM
(#23947974)
> how many consumers even know what inflation is? (many do not)
Nowadays, people don't really know what inflation is because there is none (too little to bother at least) but back in the late sixties and seventies it was a huge popular concern.
> how many consumers check the inflation numbers before buying a pizza
An economy isn't just people buying pizzas. A significant part of the economy is corporate investment, or consumer spendings made thanks to credit, and those are what's really hurt by deflation.
Nowadays, people don't really know what inflation is because there is none (too little to bother at least) but back in the late sixties and seventies it was a huge popular concern.
> how many consumers check the inflation numbers before buying a pizza
An economy isn't just people buying pizzas. A significant part of the economy is corporate investment, or consumer spendings made thanks to credit, and those are what's really hurt by deflation.