submitted 11 months ago by luthis@lemmy.nz to c/asklemmy@lemmy.ml

10 comments fedilink hide all child comments

says: ..if households decided the worst was over and started to feel more confident about spending, it could push up inflation

But I thought it was the opposite;

More spending means more demand means more supply, which means production costs go down (due to economies of scale)… so inflation goes down?

But saving means less spending, means less demand, means less income for business, means costs go up.. so inflation would rise?

you are viewing a single comment's thread
view the rest of the comments

[-] livus@kbin.social 1 points 11 months ago

Not sure what "payment" you're referring to, but no New Zealand definitely does not have a UBI.

It has a monetarist economy with a target inflation of 1-3% and has been running at up to 7% in recent years.

this post was submitted on 07 Dec 2023

27 points (96.6% liked)

Asklemmy

43811 readers

884 users here now

A loosely moderated place to ask open-ended questions

If your post meets the following criteria, it's welcome here!

Open-ended question
Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
Not ad nauseam inducing: please make sure it is a question that would be new to most members
An actual topic of discussion

Looking for support?

Looking for a community?

~Icon~ ~by~ ~@Double_A@discuss.tchncs.de~

founded 5 years ago

MODERATORS