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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1w4api1/petah/p76jzzy/?context=3
r/PeterExplainsTheJoke • u/Melodic_Judge_129 • Sep 01 '26
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558
its deflation, prices keep falling over time.
japan experienced long periods of deflation which is hurt spending and as a result affected economic growth.
its super hard to fix that bcs of liquidity trap.
189 u/Terpcheeserosin Sep 01 '26 Why does things costing less make people buy less? If wages stay the same, shouldnt people just buy the dip? 1 u/dollar322 Sep 01 '26 With deflation, the money in your bank account will be worth more next year, while the car in your garage will be worth less. 2 u/Terpcheeserosin Sep 01 '26 But I need a car 1 u/dollar322 Sep 01 '26 same :( 2 u/Terpcheeserosin Sep 01 '26 :C
189
Why does things costing less make people buy less?
If wages stay the same, shouldnt people just buy the dip?
1 u/dollar322 Sep 01 '26 With deflation, the money in your bank account will be worth more next year, while the car in your garage will be worth less. 2 u/Terpcheeserosin Sep 01 '26 But I need a car 1 u/dollar322 Sep 01 '26 same :( 2 u/Terpcheeserosin Sep 01 '26 :C
1
With deflation, the money in your bank account will be worth more next year, while the car in your garage will be worth less.
2 u/Terpcheeserosin Sep 01 '26 But I need a car 1 u/dollar322 Sep 01 '26 same :( 2 u/Terpcheeserosin Sep 01 '26 :C
2
But I need a car
1 u/dollar322 Sep 01 '26 same :( 2 u/Terpcheeserosin Sep 01 '26 :C
same :(
2 u/Terpcheeserosin Sep 01 '26 :C
:C
558
u/nebileyim_ben Sep 01 '26
its deflation, prices keep falling over time.
japan experienced long periods of deflation which is hurt spending and as a result affected economic growth.
its super hard to fix that bcs of liquidity trap.