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Question
But Deflation = price decrease = we can buy things at a lower price. Isn’t that good? Why is deflation bad for economy?
Answer
[default - edit me]

Question
But Deflation = price decrease = we can buy things at a lower price. Isn’t that good? Why is deflation bad for economy?
Answer
?

Question
But Deflation = price decrease = we can buy things at a lower price. Isn’t that good? Why is deflation bad for economy?
Answer
[default - edit me]
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Explained: Monetary Policy, Rep, SLR, CRR, Qualitative Tools
BI controls (all) banks and (some) non-banking financial institutions. RBI’s main job is to control Money supply in this game, and thereby fight inflation and deflation. Inflation = price rise = bad for economy, you know that by common sense. <span>But Deflation = price decrease = we can buy things at a lower price. Isn’t that good? Why is deflation bad for economy? Ans. Every business has ‘fixed cost of production’ say minimum light bill, phone bill, office rent, staff salary etc. So, if prices keep falling and falling (say of Nano car), then car m

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