How come we experience so much more inflation than deflation? in other words, why does our buying power decrease far more often than it increases?
How come we experience so much more inflation than deflation? in other words, why does our buying power decrease far more often than it increases?
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hints :
- inflation increases the nominal amount of tax on added value, good for countries balance sheets
- inflation decreases the real value of sovereign debts
- a company will never lower its prices as long as sales do not plunge
- energy actors only look at natural gas prices when it raises, never when it comes down
you could add your own items to the list, it's a long one.
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