When Inflation Finally Goes Back Down

by | Mar 21, 2023 | Invest During Inflation | 28 comments

When Inflation Finally Goes Back Down




When Inflation Finally Goes Back Down! In this episode of Lord Wojak, inflation finally comes down. Watch what happens as Wojak and friends go back to living their pre-inflation lives.

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Inflation is an economic phenomenon that has been plaguing economies around the world for some time now. It is a situation where there is an increase in the general price level of goods and services in an economy. This period of high inflation has been particularly tough for individuals and businesses, as the cost of living and doing business has increased substantially.

However, there is some good news. The current high inflation we are experiencing is not permanent. At some point, it is going to go down. In this article, we will discuss the possible scenarios for when inflation finally goes back down.

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Economists suggest that there are typically two ways in which inflation rates come down. Firstly, inflation can come down through a process called disinflation. This is when the rate of inflation starts to slow down, which means that prices are still increasing, but at a slower rate than before. This scenario is more likely to occur when the root cause of inflation is temporary, like supply chain disruptions or other global events.

The other way inflation can come down is when it is actively fought by monetary authorities like central banks. These institutions can use different tools at their disposal to control the supply and demand dynamics of the economy. When inflation is too high, central banks can raise interest rates, which tends to discourage borrowing and spending, thus slowing down inflation.

What would happen to the economy if inflation goes down?

The decrease in inflation rates would make goods and services more affordable, which would trigger more spending and, hopefully, encourage economic growth. Falling inflation would also mean that people’s salaries and income would go further as there would be less pressure on the cost of living.

For businesses, lower inflation rates would mean lower production costs, which could lead to increased profitability. Companies may also see an increase in demand for their products and services, as people have more money to spend, and consumers’ purchasing power increases.

However, a sudden and unexpected reduction in inflation can be damaging to the economy. If people and businesses start to expect lower prices, then demand can collapse, leading to the slowdown of economic activity, and even a recession.

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The bottom line is that when inflation finally goes back down, it is expected to have a positive impact on the economy. However, as with all economic changes, it’s important to prepare for possible challenges and adjust the outlook accordingly.

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28 Comments

  1. nitroad shadow

    lmao u think its going down.

  2. PandaXtremez

    The average cost of a bit of bread slices in the us (a small small small loaf probably of about 13 slices) is 5 dollars

  3. Anone Anone

    Ironic that wojak enjoy himself in boomer economy

  4. CewyahAlt

    This video in a nutshell:
    WOWOWOWOOWOWOWOOWW

  5. Apex Slide

    Inflation is here to stay unfortunately.
    If you haven't been paying attention, your governments have literally been changing the definitions of inflation, depressions, etc, and have done everything in their power, including weaponising your fellow citizens against you, calling you every type of 'ism they can, just to distract you from the fact you're all fucked.

  6. georg

    Thats common misconception of what "inflation is down" means.
    Prices will not go down from there. Thats definition of deflation and FED never ever allow even slightest deflation.

    You just will stuck with skyhigh prices and FED declare its job done and problem solved.

  7. Mbh Cr7

    Never going down because industrials know
    We are able to pay at a high price
    Why reduce benefit

  8. westabsupply ebay

    The fed is turning off the faucet on the amount of liquidity put into the system via quaintive easing and higher interest rates. It may sound good in the short term, the correction will lead to higher unemployment
    when supply and demand are more in check. When the unemployment rate approaches 10% this is where we can expect the fed to start cutting interest rates in hopes of incouraging business investment.

  9. Dinamiteur Dinamiteur

    Inflation NEVER go back down.

    At best thé growth slow down.

    But dollar or euro will never be deflationist

  10. Paladin Larec

    Inflation doesn't affect me much since every year they give me $2 an hour increase. So I have about 40k sitting in an account gathering dust and interest while I buy whatever I want. Just keep pumping out that sweet sweet fiat currency dawg.

  11. Ethan

    I like the thumbnail you got with 5$ apartment, honestly, it's too good to come true.

  12. Dr Brandoni

    The 1950s when you could buy a Home in the burbs for $9,000$

  13. halo3odst

    Down?

    Lol

  14. Juicə

    fr

  15. Gr3nadgr3gory

    If only inflation worked like that.

  16. BLACK LIGHT

    Your job now pays 0.5$

  17. Y M

    LMAO!

  18. dr_pacman

    Wait inflation is going down for you?

  19. TKOG

    Can't wait for honey buns to be 50¢ instead of 1 entire dollar 🙁

  20. D3w10n

    I knew it was a dream from the start…

  21. Martin Liu

    Florida spells it like "supercentre?"

  22. iNeo

    I was expecting him to get his pay check in the end and it'd be like $3

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