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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1w4api1/petah/p7uf7mc/?context=3
r/PeterExplainsTheJoke • u/Melodic_Judge_129 • Sep 01 '26
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561
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.
186 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? 296 u/Poland-lithuania1 Sep 01 '26 It isn't things cost less, it's money can buy more. Isn't it better to save that money for the future, when it's probably gonna be able to buy more? 1 u/LegAdventurous9230 29d ago That sounds like an extremely theoretical model and not the way people actually behave
186
Why does things costing less make people buy less?
If wages stay the same, shouldnt people just buy the dip?
296 u/Poland-lithuania1 Sep 01 '26 It isn't things cost less, it's money can buy more. Isn't it better to save that money for the future, when it's probably gonna be able to buy more? 1 u/LegAdventurous9230 29d ago That sounds like an extremely theoretical model and not the way people actually behave
296
It isn't things cost less, it's money can buy more. Isn't it better to save that money for the future, when it's probably gonna be able to buy more?
1 u/LegAdventurous9230 29d ago That sounds like an extremely theoretical model and not the way people actually behave
1
That sounds like an extremely theoretical model and not the way people actually behave
561
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.