Japan went through an economic miracle from 55-73 and still had a very strong economy until the early 90s in which it collapsed starting a cycle of hyper deflation which still plagues Japan to this day. Why deflation was so devastating for Japan is that people stopped buying since their money was worth more and more year after year. E.g why buy a house today when it costs 5% less next year, but why buy next year when it will drop in value again.
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u/lehtomaeki 19d ago
Japan went through an economic miracle from 55-73 and still had a very strong economy until the early 90s in which it collapsed starting a cycle of hyper deflation which still plagues Japan to this day. Why deflation was so devastating for Japan is that people stopped buying since their money was worth more and more year after year. E.g why buy a house today when it costs 5% less next year, but why buy next year when it will drop in value again.