• queermunist she/her@lemmy.ml
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    1 year ago

    I don’t think I get inflation.

    When econ dorks say inflation has “been defeated” it doesn’t mean prices go back down, right? Inflation is a rate of change, so when inflation goes down prices just get more expensive at a slower rate.

    Once inflation happens it’s basically locked in forever. Prices are sticky. So unless wages catch back up, buying power is permanently decreased right?

    So, once inflation is defeated, nothing actually gets more affordable. It just stops getting less affordable. Am I right?