Disinflation
It would seem obvious that low inflation is good for consumers, because costs are not rising faster than their paychecks. But recently commentators have been saying that “Low inflation introduces uncertainty”. This is nonsense. Deflation benefits low debt consumers and those on fixed incomes, because they receive a fixed number of dollars but can buy [...]
Definition of Disinflation By Tim McMahon To fully understand disinflation we need to first understand inflation. The reasons this is trickier than it first appears is because the word inflation is actually used in two different contexts. The most common usage of the word inflation means rising prices. Commonly “consumer prices” so when you go [...]
