What Happens to Prices in Deglobalization? - Daily Live 2.13.23 | E317
Bitcoin & Markets
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What Happens to Prices in Deflation?
Price can go up during deflation. Deflation is a shrinking of the money supply. If present lending slows relative to repayment, that can net out to being negative. However, slowing lending also means likely a decrease in production supply and spending demand. What happens to prices in that situation? So you have both falling supply and you have falling demand. It's a race to the bottom.
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