Bite Size Economics No. 4
'When inflation is falling prices are still rising'
It's widely assumed that when there is a fall in inflation, prices are dropping but that would be 'deflation'. Inflation is a rate of increase, lower increases are still increases.
Moderate inflation allows nominal prices to shift & change in relation to each other (due to market & technological shifts) with less disruption than if prices were held steady! Moderate inflation is fine!
#BiteSizeEconomics #economics
Emeritus Prof. Christopher May
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2026-06-05 05:51:44 UTC
in reply to nevent1q…gdwm
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2026-06-05 05:51:44 UTCEvent JSON
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"content": "Bite Size Economics No. 4\n\n'When inflation is falling prices are still rising'\n\nIt's widely assumed that when there is a fall in inflation, prices are dropping but that would be 'deflation'. Inflation is a rate of increase, lower increases are still increases.\n\nModerate inflation allows nominal prices to shift \u0026 change in relation to each other (due to market \u0026 technological shifts) with less disruption than if prices were held steady! Moderate inflation is fine!\n\n#BiteSizeEconomics #economics",
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