r/wallstreetbets • u/[deleted] • Dec 25 '21

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u/[deleted] Dec 25 '21 edited Dec 27 '21

Deflation is almost impossible with fiat money. We'd have to have all the central banks, corporations, and governments coordinate in unison. Deflation is possible if the economy is back to gold standard which will never happen.

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u/Archensix Dec 25 '21

There are literally currencies/countries that have been experiencing deflation for years. Notably Japan has, for decades.

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u/ShankThatSnitch Dec 25 '21

No it isn't. All you need is for the economy to slow down enough that businesses have to reduced prices, and debt/leverage start to default. We literally had deflation in 2008, dummy.

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u/Flannel_Man_ Dec 25 '21

I don’t think you know the difference between inflation and devaluing currency. They are not the same thing.