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by marcosdumay 719 days ago
That's basically the reason why many people claim a bit of inflation is good for an economy.

The same thing happens on lots of different contracts.

1 comments

Yep. Importantly, employment contracts. Employees are extremely resistant to wage decreases but they'll passively tolerate it in the form of inflation. Without inflation, they'd have to be fired and replaced with someone else just to get around that psychological obstacle.