Bringing prices down means deflation and that is terrible for the economy. It means the real value of debt increases which disincentivises investment. It also risks a deflationary spiral which is a situation where decreases in the price level lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in the price level.
Bringing prices down means deflation and that is terrible for the economy. It means the real value of debt increases which disincentivises investment. It also risks a deflationary spiral which is a situation where decreases in the price level lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in the price level.