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In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the value of currency over time, but deflation increases it. This allows more goods and services to be bought than before with the same amount of currency.
Mar 1, 2003 · One suggestive fact is that episodes of deflation occur when the quantity of resources at people’s disposal tends to increase. This can be due to a fall in population, but also to a sharp rise in productivity, coupled with an increase in trade.
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Feb 27, 2024 · Learn about major periods of price deflation in the United States, particularly in the 19th century, when falling prices accompanied rising output.
The severe contractions and deflationary episodes that followed these crises have shaped the U.S. perception of deflation. Inflation, output, and (as noted) the money supply fell during or...
May 21, 2018 · Experiences with falling prices have been rare since the 1930s. However, deflation not only has a long history going back to ancient and medieval times but also has resurfaced as a major policy concern in the years following the global financial crisis.
- Richard.Burdekin@claremontmckenna.edu
Feb 15, 2001 · Deflation can cause output to decline, but to what extent? This Economic Commentary explores how much of a problem deflation might be for modern economies by estimating the effect that massive price declines had on output during the Great Depression.
Deflation means that generally the prices of products are going down. It is the opposite of inflation. It is said, that deflation happens when there is less money than there are goods.
