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Why can negative inflation be harmful to Costa Rica’s economy?
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Why can negative inflation be harmful to Costa Rica’s economy?
Q COSTARICA — Although negative inflation can be interpreted as temporary relief for households, its persistence can become an obstacle to economic growth, according to Elizabeth Morales, deputy manager of Coopecaja. In other words, prolonged negative inflation rates, like those Costa Rica is experiencing, are not good for the country’s economy or for households. “Persistent negative inflation (deflation), like what we are seeing, is considered …
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