Like me, perhaps you have also wondered why prices aren't dropping. Shouldn't lower dollar rates make things cheaper? We're facing a peculiar situation known as the ratchet effect. The ratchet effect describes a scenario where prices rise quickly during inflation but are slow to decrease when inflation rates start to decline.
Why Aren't Prices Dropping?
Why Aren't Prices Dropping?
Why Aren't Prices Dropping?
Like me, perhaps you have also wondered why prices aren't dropping. Shouldn't lower dollar rates make things cheaper? We're facing a peculiar situation known as the ratchet effect. The ratchet effect describes a scenario where prices rise quickly during inflation but are slow to decrease when inflation rates start to decline.