Matthew W. Thomas
@SlicerDicer @feld there are lots of problems, but the main one is that people delay their purchases and wait for prices to go down. This reduces the need for production and causes layoffs.
I don't know what debt you're talking about. Lenders love deflation.
Matthew W. Thomas
@feld deflation is bad too. The goal was never to get the prices to go down. It was to make them increase less quickly.
Economic Theorist at US Federal Trade Commission | Econ PhD Northwestern 2023 | Owner of https://econtwitter.net | #research #policy #economics #econtwitter #math #mathematics #mastoadmin #fedi22The views expressed in these toots are those of the author and do not necessarily reflect those of the Federal Trade Commission or any individual Commissioner.
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