[OC] Inflation heatmap for 44 European, other DM and EM countriesSubmitted by adebar t3_zhqabn in dataisbeautiful
MasterFubar t1_iznseei wrote
Reply to comment by Wizard01475 in [OC] Inflation heatmap for 44 European, other DM and EM countries by adebar
> Why would anyone buy anything if they think they can get it cheaper tomorrow.
Because they are consumers, not speculators.
If the price goes down, anything looks like a bargain. You see many ads saying "Now 10% off!", lower prices are always a great incentive for buying stuff. An economy with a steady deflation would have a market with continuous discounted prices.
What most people, including many economists, don't understand is that deflation is a result of economic depression. Sellers offer lower prices because they are stuck with a warehouse full of unsold items. There is a correlation between deflation and recession, but deflation is not the cause, it's an effect of recession.
Wizard01475 t1_iznt8oa wrote
This is true for things like food and energy. But not for durable goods, luxury items, or things like houses and cars.
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