Re:U.S. inflation reached a new four-decade high of 8.6% in May
by credit_guy on Friday June 10, 2022 @05:27PM
(#31699549)
Deflation is never a problem in a fiat money economy. You can print your way out of a deflation.
In the 19th century and in 1929 currencies were pegged to gold, so you could not just print money. All periods of economic crisis were deflationary, and the central banks did not have a lot of tools to fight that. That’s the origin of the idea that deflation is worse than inflation. This is just bogus nowadays.
In the 19th century and in 1929 currencies were pegged to gold, so you could not just print money. All periods of economic crisis were deflationary, and the central banks did not have a lot of tools to fight that. That’s the origin of the idea that deflation is worse than inflation. This is just bogus nowadays.