system
Given the following post, respond as if you're commenting on Reddit:
human
Why does having 0% or negative inflation stagnate the economy?

I have heard this before, but I have never seen a study or anything supporting it. Why does this happen, and is it proven or only theorized?
gpt
Very much proven and for that you can look at Japan.

If the inflation is negative, people are not inclined to spend. Why buy a house today if you can keep the money and buy it cheaper next year? Or in ten years? This reduces the movement of money in the economy, which is pretty much blood in veins. No movement - no activity - no production - further stagnation and no growth.

Going back to Japan, the government constantly prints an exorbitant amount of of money to drive inflation and invests it all in domestic stocks. For reference, Bank of Japan owns circa 5% of entire Japanese stock market (which itself is second biggest after the US’s). 

Deflation is terrible.