Re:The Covid-19 pandemic is forcing a rethink in macroeconomics
by petrocrat on Tuesday July 28, 2020 @03:00PM
(#23979431)
Deflation causes demand destruction by reducing income because deflation causes (or maybe is more a symptom of) layoffs. A consumer doesn't need to check the price of pizza if their income drops to zero. They will instantly change their spending behavior when they lose their job.
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