Deflation is coming

xuanling11
Coinmonks
2 min readJan 19, 2023

--

Photo by Guillaume de Germain on Unsplash

Inflation has peaked but the story does not end here.

Deflation is coming.

If you do not know what deflation is, the ChatGPT can tell you that:

Deflation is a sustained decrease in the general price level of goods and services. It occurs when the inflation rate falls below 0%. This can happen when there is a decrease in aggregate demand, an increase in the supply of money, or a decrease in the supply of credit. During deflation, the purchasing power of money increases, and consumers are able to buy more goods and services for the same amount of money. Deflation can also lead to an increase in the real value of debt and can make it more difficult for businesses to make a profit, which can lead to a decrease in economic activity.

Since we had a terrible monetary policy in the last decade, assets value have soared, but many have been left out of the great growth period.

--

--