Inflation is when prices go up because the money we use decreases in value over time. But can our money be deflationary? If so, things we buy would get cheaper over time, not more expensive. Imagine instead of housing prices going up every decade, they went down because the money you are using increased in value. Imagine every decade, it took less of your money to buy a house, but the amount of money you had didn’t change. This is possible with deflationary money because the houses never actually go up and down in value; the value of your money goes up and down. All we need to do is switch to money that goes up in value instead of down (deflationary assets).
Can Money Be Deflationary?
Can Money Be Deflationary?
Can Money Be Deflationary?
Inflation is when prices go up because the money we use decreases in value over time. But can our money be deflationary? If so, things we buy would get cheaper over time, not more expensive. Imagine instead of housing prices going up every decade, they went down because the money you are using increased in value. Imagine every decade, it took less of your money to buy a house, but the amount of money you had didn’t change. This is possible with deflationary money because the houses never actually go up and down in value; the value of your money goes up and down. All we need to do is switch to money that goes up in value instead of down (deflationary assets).