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Post by General Riducule on Nov 16, 2014 8:37:31 GMT
Just asking.
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Post by duck on Nov 16, 2014 9:57:28 GMT
The bigger problem is inflation. It renders money more and more worthless each day.
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Post by bobos22 on Nov 16, 2014 16:39:36 GMT
deflation kills economy so yes
deflation is worse than inflation
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Post by General Riducule on Nov 16, 2014 21:06:48 GMT
I generally think that deflation will bring in more competition. I think, in the long-term, deflation kills inflation, and if it brings in competition with a specific industry, then I generally see that as a good point.
I disagree with you, Bobos.
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Post by bobos22 on Nov 16, 2014 21:42:21 GMT
Deflation causes money value to rise
People have money, and money value starts to rise. People can buy more things because they have money but value is higher. They are happy.
Suddenly people who produce and sell things realise that because of money value increase which caused prices to lower, people can buy more things for the same amount of money so its not profitable to produce and sell things anymore.
They close their businesses until production lowers and prices (demand for product rises if amount of products lowers) go higher.
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Post by TheAdvert on Nov 16, 2014 23:40:06 GMT
Both are extremes, and eventually will kill the economy if not maintained correctly.
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