• HobbitFoot
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    1 year ago

    It can be good if you have cash and need to buy things. It can be bad if your retirement savings is a second or third condo that is dropping in value.

    • jcit878@lemmy.world
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      1 year ago

      it seems the ideal situation is stagflation, no-one is worse off. i have no idea why a small amount of inflation is considered ideal

      • HobbitFoot
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        1 year ago

        i have no idea why a small amount of inflation is considered ideal

        Because it encourages money to participate in the economy. If an economy gets stuck in a deflationary cycle, it encourages people to stop putting their money into the economy to invest or to act as a way to get people to make purchases sooner.

        That can be ideal if you are anticonsumption, but not so much if you are relying on a low unemployment rate to help keep people happy.