Is better for economy high / low Inflation or Deflation ?

What is better for economy, Inflation or Deflation ?

Is better to have high or low Inflation rate ?

Or is it better to have high or low Defaltion rate ?
give a positive ratinggive a negative rating
13 Jul 2019 at 06:03 PM
For economy and business environment is usually better to have inflation rather than deflation. It is important to have the inflation rate under control. According to many economists, it is good for country to have a low inflation. Optimal inflation rate is 2%.

Very high inflation rate causes a problems to monetary system and it can be dangerous for economy. Deflation is in general considered as not good for economy, mainly in long-term period. It often occurs during economic crises. The deflation increases the real value of debts and it can lead to economic stagnation.
give a positive ratinggive a negative rating
14 Jul 2019 at 05:59 PM
Share on FacebookShare on TwitterShare on LinkedInSend email
2023 AnswerTabsTermsContact us
How would you rate your experience with AnswerTabs ?
Very badVery good
Thank you for your feedback.