All fiat currencies are designed to prevent hyperinflation and deflation.
Why is deflation bad for an economy? It encourages prior to hold off on spending money as money tomorrow is worth more than money today. It also means people are less likely to invest money, as you can get better returns by saving your money under your mattress.
All fiat currencies are designed to prevent hyperinflation and deflation.
Why is deflation bad for an economy? It encourages prior to hold off on spending money as money tomorrow is worth more than money today. It also means people are less likely to invest money, as you can get better returns by saving your money under your mattress.