Post
Topic
Board Economics
Re: Is Inflation Necessary
by
poodle63
on 27/05/2024, 09:17:21 UTC
In my opinion, every country experiences inflation, but inflation is not too high. What the country doesn't want is deflation because deflation has a terrible effect on the market so that there is no economic growth for the country.
everything has advantage and disadvantage I guess with deflation it also strengthen conversion rate but as you said might have bad effect also.
its good if salary increase also align with the inflation so that the money can be inflating but our purchasing power won't gone in vain.
since our economic entirely depends on the circulation of the money, hopefully such thing can happen.
otherwise with the reduced purchasing power for middle class and the lower class people based on income rate, then the poverty gap will be even higher than it is right now.
definitely not an easy way to solve but there should be an effort to be put into solving this.