The simplest way to understand natural deflation is that everything keeps getting more affordable.
That’s it.
Instead of everything getting more expensive, it all gets more affordable with time. ...
Small note here, everything will become more affordable during deflation if innovations/optimizations keep coming. If there are always appearing more efficient ways of manufacturing etc
If I earned X money and can afford bread and water till the end of my life and I don’t actually want to do anything except for watching the birds in the nature and there are 80% of ppl like me - then prices of bread and water will skyrocket and CPU, jets and smartphones will fall down but nobody still buys it
If I earned X money and can afford bread and water till the end of my life and I don’t actually want to do anything except for watching the birds in the nature and there are 80% of ppl like me - then prices of bread and water will skyrocket and CPU, jets and smartphones will fall down but nobody still buys it
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