Why is inflation sometimes considered better than deflation?
Answer (1)
Moderate inflation is better because it keeps money moving. If prices slowly rise, people are encouraged to spend now instead of waiting. This helps businesses earn and pay workers. Deflation, on the other hand, makes people delay buying, expecting prices to fall more. That hurts businesses and leads to job loss. For example, Japan struggled with deflation for years—people saved too much, and the economy slowed down. In contrast, a bit of inflation helps economies grow.
