pls. how is zero inflation a bad thing?
can anyone explain me the negative interest rates of japan? does it mean you cant keep money in a bank account? or is it something else?
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Didn't know this was a thing, but my guess is it forces people to not sit on cash making them invest which means stimulating the economy.
The japs are proper people, so their banks probably don't make much money on people bouncing checks, overdrawing or taking out high interest loans that they shouldn't be touching.
Talking out my butt, have no idea why.
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but you can literally sit on the literal cash. how would literal cash disappear when inflation is zero?
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If everyone decides to start sitting on cash because of zero inflation then you go into deflation
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is this the utopia communism promised?
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Unless you own any debt. Hence why there was an economic disaster caused by deflation every 5-10 years in early American history
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Bank needs to make some profit. You can sit on cash you got under the mattress. But if you got someone else holding it for you they can skim off the top.
How that works with a federal reserve idk, talking out my butt here.
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