Topic: Are Inflation and Deflation the Worst Economic Threats? (Read 553 times)

Inflation isn't an issue when it's controlled, and hyper-inflation or deflation are symptoms/causes, not some external threats by themselves. Those several other issues you mentioned could impact the economy in a way that they could be a part of issues causing that hyper-inflation or deflation.

And what do you mean by "worst"? In what way? I don't think that it's constructive way to think economy to focus on what's "worst" threat for it, but on the fact that it's a really complex system where every part is required. Healthy economy has all the parts moving and it's build on resources and relations, but without resources, what ever they may be, economies won't thrive. So if i would have to pick worst thing that could happen to any economy, that would be lack of resources, and people are already preparing for it. Some people don't think it's a problem, because they think that lack of resources is probably not the issue that impacts the world during their lifetime.

I will talk about inflation and as we know it's one thing that has gradually been increasing all these while and is on a regular basis and yet it's more manageable than that of the political hindrances, in fact some of the political issues is what attributes to inflation where they aren't open to carry out their duty effectively than their personal interest to loot and if you check Nigeria you would see that what we are talking here is a reflection to what we are experiencing today.

They can be very dangerous, but it's usually the speed that they happen that throws everyone off - when you get rapid movement in them, it can majorly disrupt supply chains because there are lots of fireworks popping off unexpectedly through the manufacturing and services involved. There is a great danger that you get caught in a cycle downwards or upwards as well, where companies are forced to raise prices due to materials increasing, then labor costs to stay competitive and it needs to be arrested or it will keep going. That is why the central banks have to act and seem to have found the acceptable balancing act this time around, however countries like Zimbabwe (hyper inflation) and Japan (stagflation) are examples everyone is trying to avoid.

Definitely inflation have been an irristible factor to every economy growth but then there are other factors that serves as a threat to the economy, so I believe inflation is just a natural phenomenon that ought to be experienced by any growing country.

Well spoken here. An economy with no balance in the system would crumble. And funny enough such system cannot exist in this era. There must be the poor and the rich to create a balance economy. But in the meantime, an economy where inflation and deflation is a problem is one which those who attempt to progress cannot progress. Because in every country we get to see people who strive to get out of their country. Now the different between countries where inflation and deflation is not a threat and where it is a threat is that. To where it is a threat those who strive and push to get better will always be attacked by inflation every month. Many countries inflation increases more than 20% every month. Such economy no one can be able to grow or get better. But in a country where its not a threat, you see people being able to come out of poverty, especially those who put lots of effort to overcome. Even if inflation and deflation cannot be completely favorable but it should not increase faster than the efforts of every individual.

With inflation and deflation, all those things follows like hike in unemployment which is obviously due to the lack of profits in the business sector which again points out the financial instability and flawed political policies and system. I am not an expert either but I do read a lot of finance and from my understanding small inflation is better than deflation and that's essential to keep the circulation of currency that will increase the spending nature while contributing to the economical growth.

Both inflation and deflation are problems that greatly influence or have an impact on a country's economy because both inflation and deflation are interrelated between the two if something happens to both of them must be controlled immediately. So it can be said that yes, inflation and deflation can be bad things for the economy in every country.

If there is high inflation, it can make people have to spend a lot of money to buy goods and services. If inflation is not controlled it can hinder everything, then it will have an impact on the economic growth of a country.

Deflation can also cause problems with demand, investment, and of course will increase unemployment. However, between the two, the most difficult to control is deflation because it is a serious problem among other problems that have an impact on the decline of a country's economy. Other factors certainly exist, but these two factors play a major role in hampering the economy.

Economic depression is worse than just inflation and deflation. A situation where nothing is working in the the country, all sectors of the economy are affected, there is high rate of unemployment, inflation, deflation, high cost of living, poor standard of living and many more is not what any country should wish for.

Although some factors like war and natural disaster which are beyond our control may cause economic depression, in most cases they are as a result of the government's carelessness and some poor economic policies put in place by the government. Those little acts of corruption the government and its people are condoning, those important aspects of the economy they are neglecting might generate into something serious and before they could be ready to fix it, lots of damages have already been done.

Some countries are already walking into economic depression. Only if they realise on time, they can fix some of these problems and save themselves years of severe hardship.

Anything you mentioned are just subsets of inflation and deflation. Let me explain, if there is unemployment then there is gong to be less available jobs for people and that means low productivity with equivalent low availability of good and service and that means no competition, there is going to be increase in price of things which will lead to inflation and if there is political instability, there can be a war which can also lead to inflation because things are going to be scarce and readily available.

Every thing that happen in the economy will always be surrounded by inflation and deflation but most of the time, inflation occurs mostly due to political instability, unemployment, high circulation of currency, famine, natural disasters, war, biological weapons and many more. All these can give you nothing but inflation and kills economy faster than you think.

Income inequality is at its highest point since we can measure such data, and while this brings instability to the system, the fact that so much money is concentrated in a few hands and those people can influence politicians with ease means that the system will continue as it is until it crumbles down, and the same is true for unemployment, as with the advent of AI, it is likely unemployment will keep growing out of control during the next decades.

Yes I think inflation and deflation poses large threat to an economy, because one of the number one factors of inflation is to reduce the purchasing powers of the citizens, what could be more detrimental than citizens not being able to afford goods and services at a moderate level.  inflation specifically has a multiplier effect as it affects productivity, hence there's no demand in the market, production reduces by certain percentage. High unemployment rate, political instability all have their side effects in an economy as they contribute to economic uncertainty but not as dangerous as inflation and deflation.

Every government problem affects the economy like that high unemployment he mentioned. But for a huge country like US, its not just the inflation that causes the economy to crumble. The policies more than likely that affected it more.

When they decide to move their manufacturing companies to China because they want globalization and all. It became a problem since.

Inflation and deflation has their own threats as other factors also have their own threats but I don't think they're the worst things that can happen to an economy. What I think is the worst is when an economy becomes so stable that it begins to become a victim of it's own success.

Just imagine an economy that everything is working so fine that everybody is rich and there are no poor or middle class citizens to do the low class jobs of keeping the streets/road clean. The sewage system, garbage disposing and the rest of the low class jobs that the rich won't want to do.

For an economy to be working perfectly, things have to be balanced (we need the Poor, Middle class and the Rich). Inflation and Deflation can destroy an economy and it can also build it up depending on how we respond to them affecting the economy.

It certainly does affects the economic growth and personal economy of every human being. The purchasing power decreases when inflation rises.
And we don't need to guess when it will happen because I think before most of the reports were being done annually on how much inflation does.
This time, I am seeing monthly reports of it which is freakin' crazy. Soon, we might get a weekly report and then a daily report of inflation increase.

Inflation and deflation has a role to play when it comes to   economic growth this factors can go as far as  increasing the level of financial instability and also affect the standard of living of the people . It also  has a way of distabilizing a currency value thereby making it unstable in a way.

We all are thinking inflation and deflation are the major threats of the economy but little do we know that alot of things we face each day are threats to the economy, and it's all because of the rise in goods and services that make us see it that inflation is the problem whereas it's not, for me when you talk about threats we look at the insecurities in the country that has caused alot of people's lives and properties, look at the unemployment rate thereby making it difficult for one to provide for himself and family leading to  alot damages as well, and many more, if we can tackle those one then inflation and deflation are minor.

Inflation & deflation are very real economic threats. Inflation erodes purchasing power which leads to uncertainty & decreased consumer spending. Deflation can cause a slowdown in economic activity increasing the real burden of debt & discouraging investment. Both can disrupt economic stability & growth making them big concerns for policymakers.

That is the condition of activity that occurs when inflation occurs and basically the lower classes will be quite affected by this condition even though people who have financial stability will also be disturbed. That is why there needs to be a solution for the government when economic conditions get worse so that lower classes can get solutions to the problems that occur.

When the food sector is hit further due to inflation, a country will have quite a problem because food is the lifeblood that needs to be kept stable. The scarcity of these needs will be quite problematic and the absence of a solution that can be done will worsen the condition. The decline in prices caused by deflation is inseparable from the decreasing purchasing power of the community due to the problem of not having money to meet these purchases.

Any effort must be made by the government because the guarantee of people's lives is better regulated by law and I think every government must find a way to solve it even though it sometimes takes time to stabilize. Furthermore, the role of each individual is also very much needed so that inflation and deflation can be emphasized to be resolved more quickly. There will definitely be an impact after the normalization of the situation that has not gone well and that's where the role of many people is needed to reduce the numbers.

Inflation is main thing that effected all countries of World but that is time for every country to stand because there is no pandemic and no epidemic but only there is freedom in many countries. The countries which are free ,these can grow and these can became their name on International level. Bangladesh economy is strong and that government is giving allowance to the business and there is more prosperity as comparison to Pakistan . USA government is applying the taxes on the poor people and that is big reason of their slow growth. And they have to change their strategy for the establishment of country.

I wouldn't say "worst", because they are known stuff that we already can see beforehand, so we faced them multiple times. I am not that old and even I have seen both of them more than once so far, and I have to say they are not really that tricky to overcome. First time it happened to me, I didn't know what hyperinflation meant, I never seen one, so I couldn't really react, and it was a terrible terrible period for me, but second time it happened, I was more ready, I didn't made any profits, but I did benefit from it in the sense that I didn't get any crashes and debts and all, so didn't get better but not worse neither.

Next time, I have plans to be ready for it, and I am checking to see how I can do it, if it happens before I am ready then I will see same result as second time, but if I can get ready before it happens, I will make a huge profit too. Maybe it's a bad idea, maybe I shouldn't do it, but I am pretty ready for anything to go wild this time.

When it comes to ultimate threats that affect the economy of any country or region, I doubt any between inflation or deflation would wreak as much havoc as natural disasters or something like a pandemic or war.
These has great effect on how a countries economy and recovery may become met with inflation or deflation as an after effect of the current situation.

Yearly is to much it's now weekly you can not exactly the same thing the same price again this shows the level at which inflation is going and it is getting seriously out of control and it's now as if no one have control over it because this is an intentional problem and it as gotten out of hand no one can do anything about it because even does that created it are clueless and they are even making it worse. A lot of people are finding it hard to afford most of the things they need and they buy the one they can and leave the once that they can not afford. Everything is out of hand.

I don't think anything will even get cheaper now because their is a chance that people will not be able to afford so many things and the rich will lord over the poor and the average people and we have  seen a lot of that in the movies, when you see the rich taking over because of the inflation and their are limited jobs to earn from, if you have a job then you should be lucky. Because sooner or latter you will not be able to work because robots are taking over soon   their implementation that advancement and those are the things we are already suffering from.

it isn't the worst economic threat as long as it's controlled deflation/inflation I think, I'm no economic expert but the thing in keeping economic stable is controlling the inflation at low rate so that it increases circulation of money so the entire country's economy is running.

I've seen many people points out about the danger of deflation and I agree with their take, aside from that, the unemployment and so on I think is the product of many factors not limited to inflation.
but if the economy is worsening, the inflation rate is so high it's abnormal, of course the unemployment rate will also sky rocket. economy i think is always finding equilibrium.

Indeed The economic crisis resulting from poor purchasing power, high unemployment rates, and dwindling social functions is of course a challenge to the stability of an economy. As it goes further that economic growth is still in the negative zone then the ripple effect of such condition will be manifest in the commercial world and in the public domain. Of course, continued deflation only exacerbates this problem, as many businessmen have to reduce their prices until their companies go bankrupt, and there are more jobless people as a result. We can all grasp how the existence of global uncertainty that has affected has left economic actors overly concerned on the outcome of the future.

Thus to combat this complicated situation some measures like rate cuts are highly essential in order that they get ready to invest or expand their business again. And so, we are able to generate human employment and can get people moving again in the economy. Also, direct government securities like bonds could also be one solution of increasing Money supply which will help boost people’s purchasing power. While solutions such as this one require time in order to effectively cause substantial shifts, much more effort and perseverance is needed if we are to begin rebuilding the economy from the effects of this crisis.

People's purchasing power decreases, economic activity weakens, the intermediation function weakens, unemployment increases, social activity weakens, etc., finally GDP decreases, economic growth continues to be negative, this is a dimensional crisis and global economic uncertainty haunts economic actors. Of course this greatly affects the economic stability of a country.

What is certain is that negative inflation or deflation is inflation that is not good for a country. There may be other factors, but the most visible is between the two. Therefore, if not handled immediately, a deflationary spiral will emerge, the peak of which can spread to the food sector. This deflation also makes entrepreneurs have to lower their selling prices until they finally go bankrupt and do not dare to open businesses again, resulting in many people being unemployed.

Therefore, the way to overcome this deflation is to lower interest rates from banks so that entrepreneurs dare to open businesses that allow people to have jobs again, buy government securities such as bonds that can increase the amount of money circulating in the economy. However, as you said, although this problem has a big impact on a country and the government is trying to solve it by taking good steps, it takes time to solve it.

Of course these are some of the factors that can affect a country's economic stability during inflation and deflation. Just look at some of the events that happened in previous years where both of them killed many things and affected a country's economy.

All wrapped up in one big issue, inflation, deflation and political stability can magnify the problem so that the country can create a large gap. Lack of purchasing power due to unstable money circulation in society becomes a problem and conversely there is large unemployment for the affected community.

All lines become a threat to the country if they are related to instability, these issues become more prominent after several events that are difficult to resolve. Although in the end the government will try to take steps to resolve it, sometimes it cannot be done in a short time.

I have to agree with you, political instability at this standpoint is the worst economic issue. Inflation happening is because there is no strong governance to regulate the economic affairs of a country. Inflation or deflation means the government is not handling the economic aspect properly, and that boils down to a really disturbed leadership.

Just like you said, the political instability we are going through currently is what's causing a lot of economic harm, is the cause of lots of unemployment. Structures are not being put in place to employ recent graduates, low pay, no proper plan to increase workers' wages, poor healthcare, and poor international trade power, everything boils down to political instability.

If the government of a country is organized, then a lot of things can be managed. So yes, inflation is bad, I mean things are just on the high, and deflation too is terrible but you see, the moment where a country does not have good governance to even look at these issues means it's just going to keep getting worse. Anything happening in international countries will affect your own country and affect your currency too.

Eventhough inflation destroy purchasing power and deflation halt economic activity, both of them is not always the worst threat to economy. This year I could say that worldwide inflation is stabilizing, but the main threat currently is political instability in some region, the income gap that is getting wider and wider each day, and massive unemployment in many countries even in some developed country. These issues fire up unrest from France to Brazil, leading to strikes and riots that harm economies worse than inflation in and of itself.
https://www.maplecroft.com/products-and-solutions/geopolitical-and-country-risk/insights/political-fragmentation-rises-in-europe-srcc-risks-run-high-among-major-economies/

Increasing inequality and unemployment create social unrest in several systemically important economies, thereby creating other varieties of risk for companies and retarded investment, which has potentially devastating consequences. These considerations make it plain obvious that whereas inflation and deflation have been paramount, they are not alone the threats facing the world at this point.

The worst thing that can happen to a country is political instability. It could lead to conflict which would cause economic decline and discourage investment in the country. Other economic conditions can be managed by applying the right policies but political instability can lead to inflation, unemployment and inequality. Inflation or deflation are the outcomes of a country's poor handling of the political and economic environment.

Most multinational companies in my country are leaving because of political instability. Each new government that comes in changes policies, and it is affecting the operation of these big firms. Their departure also made our country earn fewer dollars, which reduced our foreign reserves. The reduction of foreign reserves is causing inflation. These multinationals used to employ thousands of my countrymen who are now jobless because of their departure. Political instability, inflation, unemployment and inequality are all interrelated and interconnected.

High unemployment, political instability and income inequality can be all products of inflation and deflation. What you need to consider is that in economically context, most events happen in series or in cycle. In short, one thing always leads to another. They are all interconnected and you will find that one thing causes another to happen that will cause another thing to happen and so on and so forth.
Like I said they are all interconnected. Political instability can contribute to inflation and deflation too. It's important that in the broader sense, we all look at the factors involved and try to balance everything not only focusing on which ones are more "detrimental"

I guess you could say this is why economic crises are so difficult to solve it is because it can not be only pinned to one thing or one cause. You have to consider all aspects of the economy.

Recession/depression is a bigger economic threat than inflation/deflation. The good thing is that governments have evolved and they know how to deal with recessions/depressions, by using the instruments of fiscal and monetary policy. John Maynard Keynes told us how to solve the problem, when the country is facing an economic downturn.
Another big economic problem is the "poverty trap" which is very common in the underdeveloped countries. The population is growing faster than the country's GDP and this creates greater poverty. The government doesn't have enough money to invest in education and healthcare, which heavily decreases the quality of life in those underdeveloped countries.

Every year theres an increase in the percentage of inflation and a country needs to control the economy properly because they cant make the balance for the inflation the price of the needs of the people will get increase and still they have the same amount of salary they will get shorten with their financials also if you will check only a small amount of percentage every year people increase on their salary and include here the number of taxes they need to pay. Regarding with deflation seems people will agree on the bottom line that they can now afford things but if the cheaper the price the higher the chance they get small GDP if they will tally at the end of the year so if this is balanced people will easily can adopt with the changes and they didn't need to suffer too much. Seems only the upper class and higher-middle class can afford to survive with the inflation rate at least.

Deflation is far worse than you think, just because it grants you cheaper goods it also comes with an avalanche of  other effects. For example, cheaper goods mean lower wages paid, right, because there is not point in selling a pizza for half of the price and still paying the delivery by the same,  lower wages mean also less consumption and as prices go down people are not keen on buying stuff like houses or land or cars, meaning unemployment in the construction sector in the industry, and then a death spiral like it has happened last century.


Yeah because Japan in a deflation period having a higher GDP/debt ratio than Argentina experiencing 200% inflation is obviously an example of that.

A lot of businesses have suffered just because of inflation, and at the same time has made the global market to be unstable because if you look at the global market everything is affected I know the experience of every country will be different. inflation has a lot of effects on the economy and not only on the economy it reduces demand because not everyone will have the money to be able to buy, and even those that have money to buy will reduce the quantity just because they want to cut cost, and at some point it brings confusion because as the experts are seeking solution the same time they are creating more problems. so inflation cause more harm than we can think of, inflation also affect the currency of a nation, and the remedy i see experts gives does not look useful for me the only one i see is to leave with it because even people we are hoping for them to give us solution is no longer their concern what people are going through.

Inflation is a common factor behind the worst things we mean here. In my opinion the high unemployment rate because the difficulty of getting a job is a special factor and the worst in the economy of a country.
The country can run normally if the object in it gets ease in getting goods.

For me when viewed from the definition of both, then the two are not the main threat even though it is peeled deeper, it can include the main threat in the economy.

Inflation is not entirely bad, a high level of inflation is bad, but if inflation is at a low level, it is okay for the economy. I have read from numerous articles that deflation is worse than inflation, though to some people who are looking at it subjectively, it is not possible, but it actually is, if the prices of goods and services is reducing and the value of money is rising, it basically means people are not spending money, but rather are hodling onto it; this would drive so many companies out of business and cause serious unemployment.

That being said, it is now up to each and every country to find the balance, and that is were some do it better than others, and that's why we have healthy economies, and some that are in a terrible state.

Inflation and deflation, bro, those are the obvious monsters everyone's scared of. They're the economic boogeyman. Inflation consumes your money, therefore increasing the cost of everything. And deflation sets off a vicious circle whereby companies collapse, consumers stop spending, and the economy collapses as well

But there are other threats lurking. High unemployment implies millions of people are suffering. That sort of desperation fuels social unrest. And political can destroy an economy. A corrupt or inept government throws the entire system off. And income inequality, man, that's a cancer. The rest of us are left battling for leftovers when a small proportion accumulates all the riches

So yeah, inflation and deflation are serious. Still, there are other games in town. We have to realize how all these different variables interact: unemployment, instability in politics, income inequality. Since that's the secret to create a very strong economy. It's not just about controlling prices, it's about creating a system that works for everyone

"Worst" seems like a bit of a stretch, we can't really calculate the situation in data, like which one is the worst because when one thing happens, usually other things happen as well. In reality, we could say that there are very few nations in the world who doesn't hurt from wealth gap as well, so we could say wealth gap could be the biggest trouble.

When you say that wealth gap is an issue, people think that you are automatically a communist, which I am certainly not and have never been, on contrary I am a liberal who believes that governments work is very minimal. But I also believe in UBI, like nobody should be starving on the streets, if we can have a nation of people at bare minimum who have a place to stay, food, some education, and some healthcare, then rest could be a big gap, just cover those basic human needs.

It's very short term thinking - inflation and deflation have been around for a long time, we were very lucky pre-covid to have such a persistent and long time where inflation was relatively low for most countries. Deflation is rarer although Japan suffered from it for a long time. The next economic disaster will likely come from something completely unexpected and it's hard to even think up, just like the financial crisis in 2008 or the dotcom bubble around the year 2000. They pop up in unexpected ways and reek havoc, but it feels like inflation is being tamed right now. Something stupid, like China invading Taiwan, could set off a disastrous chain of events causing it to spike again but we just have to take it day by day and hope for the best.

I'm just like you that not an economist but I think it was only inflation is the ones that can destabilize a country or the ones that is a threat to it and not deflation because it was the opposite of it (inflation) which means it can help us to bring back the low value of the goods again, or can bring us the true power of our local currencies again. Apart from the inflation, I know there is also recession but I think both are correlated with each other or the other won't be triggered if without the other. I was going to stop there because I don't know any more or forgot the others, not until I continued reading your post and stumbled upon that "Political Instability".

I think in other words this can also be called as a corruption, or simply poor governance because they can lack in knowledge on how to handle the issue of the economy. Indeed, Inflation/recession must be the ultimate threats because it is experienced globally from time to time.

Inflation is actually a good thing as long as it is low and under control.

Deflation on the other hand kills the economy entirely. The velocity of money goes to zero which means nobody’s spending. If people don’t spend, companies will be firing their employees. The unemployment rate will skyrocket and people will starve themselves to death.

High inflation is bad too. This time people will be rushing to spend their money because money will be losing its purchasing power too fast. The velocity of money will skyrocket. The economy will get too hot. Pricing goods won’t mean a thing because the prices will change very fast.

inflation and deflation don't just happen by themselves, there are things that are responsible for inflation and they are more dangerous that the real inflation itself. Inflation basically is a product of factors like;
demand-pull,
cost-push, and
inflation expectations which are not properly dealt with. The main issue is that the demand for commodity is more than the available commodity which cause an increase in the price of goods and so it's not about talking of inflation but ensuring that what has led to the inability to produce goods that will meet the needs of the people is worked on.

As long as a nation can work well on her dependence on locally made goods as well as ensuring that resources her out in place that will reduce the cost of producing those goods, inflation won't be a serious issue but untill that is being sorted out for, inflation is going to continue. What's the point here is that inflation is not the worst economic threat but rather, those factors that leads to inflation if left unfixed are the worse economic threats.

Most people don't mind their money depreciated overtime and inflation is needed in order to make banks survive, that's why low inflation is good for the government.

High inflation will make people scared, deflation make people to hold their money instead of spend it which make the economy not going well. That's why both high inflation and deflation are bad for the government.

Unemployment is caused by the citizen itself, they only want to work in something they like, same major that they taught when they were in school/university, and want to get paid high when they don't have many experience.

Political instability is a case that can't be resolved and it's normal, different person will have different opinion, you can't expect everyone will say yes and everyone will say no, except you live in North Korea.

Income inequality isn't an issue, if you don't happy with your company, you can negotiate to increase your salary, if they reject it, you have an option to quit and looking to other company that want to pay you as high as you want.

A country's inflation rate is only as good or bad as its leaders and economic team and their decisions. Inflation isn't something that you can directly change. You can only do the things that you find necessary to hit your inflation target. Sometimes you miss. Sometimes you succeed. But it isn't a thing you directly manage.

So I guess the worst economic threat is making decisions, economic or otherwise that have impacts on the economy, that will damage the economy. The rate of inflation can only reflect a government's competence. Having the right programs and policies and implementing them well will result in reaching your desired inflation. Failure to do so may cause hyperinflation.

isn't inflation literally the indicator to know that something is going on with the economy if all those you mentioned including political instability, pay wage gap and unemployment on the rise inflation will also affected.
I personally always considers inflation as something that sums up all those collaborative factors so its easier to judge. so if there's hyperinflation, the economy going the drain, if its just little inflation, its fine.

agreed with this, debt is also one way that become the culprit of economic threat, it also correlate with inflation, the key is that if a country trying to get a loan from other country they need to know their capability to pay back, the reason developed country have high debt because they also have high performing investment in various sectors or productive debt that could well pay all these debts if needed although not in one go but they have strong cash flow overall.

meanwhile if a country is so crippled economically and decide to get debt, its like a time bomb, eventually gonna explodes, because where they gonna get the money to pay back if the debt is not productive debt. the hyperinflation is imminent. often happened to country with high corruptions.

Everything is interrelated, political instability will affect investors so that they can leave the country which will result in increased unemployment thus affecting people's purchasing power because they don't have money because they don't work, This happens in my country because every five years the political situation becomes uncertain because of elections, after that the government will start to increase their debt ratio to continue to be able to finance the country and so on, so it's once again interrelated, what damages a country's economy the most is when they have an incompetent leader and they are elected just based on likes and dislikes, and inflation and deflation are just words used by the government to say the condition of the country but actually they are not competent because he cannot lead.

The other issues that you've mentioned are actually a really good issues to deal with because once those issues are dealt with actually, they're the ones that would resolve the issue of hyperinflation, uncontrolled deflation, and uncontrolled inflation, more money for more people means that there's more spending for the economy and an economy that has more circulating economy is healthier because there's spending, I think that's the reason why there's big inflation, there's not a lot of people spending money because they're all saving their money because they don't have a lot to spare.

No other case can be worst than political tossle that may Leed to war, some sort of deases outbreak just like the COVID 19 and many other natural disaster like earthquake, tsunami or heavy flood. These are the things I see that are  worst economy threat. Because when each of this happens it totally distablize the economy, making people to suffer. and sometimes people start afresh after losing all what they have labourd for many years. and some others may die due to the shock because they can't withstand the shock of starting afresh, expecially the tsunami, war or earthquake. So there are certain situations you will see, you'll prefer inflation. Not indirectly saying inflation is good but when people compare some worst case scenario, some may be better off than the others.

However what you have said are actually correct and these are things that increase inflation and economy threats in the society, but  there's another one which we are not paying attention to, and is called dept crisis. These is a things that will not end well if the government are not planning on how to settle the depts. However, if a country can't pays their dept because of the inflation it makes them borrows more and that's how depts keeps piling up and such things also decreases the growth of the economy in the country.

IMHO, we won't go that far with how it happened with other countries. Yes, the other factors are there that you have mentioned. So it's a collaborative factor that made their economies down but still, the biggest factor that has ended their economy and pulled it down is inflation. It leads to hyperinflation and everything is so expensive and their main currency, the local currency has lost its purchasing power and toilet paper is much more valuable than theirs. That's one just one factor there that affects entirely the economy, as well as the politics that's happening in the country also plays a big part.

As much as inflation and deflation are major factors in the economic threat, political instability is the worst.

Uncertainty in government policies, changes in leadership, or conflict can create the worst in the economy.

One of the major reasons for the hardship in our country, Nigeria, is bad government, if you may ask me.

The leadership method is so uncertain, and it's had a lot of bad effects on the citizens, which has contributed to making the youth and even other men go into things they vow never to do.

I believe inflation and deflation can be managed compared to an uncertain government where no one is ready to learn or listen to others.

Only the uncertainty government can cause debt, which is another factor, conflict, and also unemployment, which is the major reason I believe the uncertainty government is the worst factor.

With inflation, they can just adopt other currencies and go on with their lives despite the rising prices of products. Unemployment also since companies will shut down.

Either of those things will make a country weak. If there is no military power right between the neighboring countries while the other is weak, it's the border issues that arise. One country will take advantage of the turmoil. The war with a neighbor is likely the worst that can happen.

I am not an economist but from the little I know about the economy, I have viewed inflation and deflation as factors that can destabilize a country's  economy. But I often question myself if they truly the worst things that can happen to a country's economy. Are they? I know how inflation reduces the purchasing power of the people, while deflation decreases consumers spending and holds the economy stagnant. However, what about the other issues like high unemployment, political instability, and severe income inequality aren't they are as equally damaging or even more damaging than inflation and deflation? Do you think inflation and deflation are the ultimate threats, or should we consider other economic factors as potentially more detrimental?