Because that would mean it's going down. You absolutely want to avoid deflation at any cost. Deflation is bad.Sorry, but why would not seeing the inflation rate go up a bit be worrisome?
Uhm, wrong. The Great Depression was the worst case of deflation our economy has ever seen. It was a huge deflationary spiral.Deflation? Where would that come from in a recession? The Great Depression- clearly the biggest "recession" this country has seen- was full of stories of families having to take entire wheelbarrows of cash to buy a loaf of bread... that doesn't sound like deflation to me.
I think you copied that off Wikipedia...In economics, deflation is a persistent decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below zero percent, resulting in an increase in the real value of money — a negative inflation rate. Inflation reduces real value in money, deflation increases the real value in money. This should not be confused with disinflation, a slow down in the inflation rate (when inflation decreases, but remains positive).
Deflation is considered a problem in a modern economy because of the potential of a deflationary spiral and its association with the Great Depression, although not all episodes of deflation correspond to periods of poor economic growth historically.
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