Which of these economic situations would you prefer to find yourself in?
A- Your salary is stagnant but prices fall. Where this happens, your real purchasing power has increased. It's called constructive deflation. And even if your salary falls, but prices fall faster, you are still ahead.
This is great and any country experiencing this should be regarded as great and lucky. They have good purchasing. It's because government is placing subsidy on the prices of goods.
B- Having your savings taxed 2%+ a year by inflation.
Drop your thoughts
I didn't understand this. I thought you were going to say "having your salary raised and prices of goods raised also.
But which ever option is still good because in my country what is obtainable is totally different.
In my country, salary is stagnant and prices of goods raised upto 7x within 3 months or so