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Cake day: June 23rd, 2023

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  • I’m no expert on inflation, but if I can buy one cone of ice cream today and know that (due to inflation) I won’t be able to buy one tomorrow, I’ll buy it today. If I can buy one cone of ice cream today, but for the same money two cones tomorrow, I might wait.

    If I know consider different wares, this behaviour might change. Essentials to survive, I won’t postpone to buy.

    So as I understand it, in case of deflation you’d only hoard cash for luxuries.