The follow on from yesterday’s post:
What Is Deflation?
22 Jan 2014
tags
Roaring Twenties! Um, welcome back?
Personal Finance: involves more persons than you think
Post Covid Investing: good for assets, bad for returns
Coronavirus, Lockdowns, and our Post Corona Lives
Printing Cash and Printing Money are not the same thing
Comments
Caustic Pop January 22, 2014 at 09:15
So the deflationary spiral is a big threat because people cannot psychologically adjust their expectations to take nominal income reductions. But the cure for deflation is for people to psychologically adjust their expectations to believe they will soon receive higher nominal incomes. And we wonder why income inequality becomes a greater and greater issue when this is the precept for keeping the creaky financial system afloat?
ReplyJayson January 22, 2014 at 22:17
I agree! Bitches be crazy…
But isn’t that just a statement of collective loss aversion bias? One where winning the bargaining council battle loses the income inequality war…
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