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a very interesting question. Personally I don't think its possible to solve deflation by adding taxes. It will only put more pressure on the suppliers and consumers. The result of this policy when we have deflation will be even deeper depression.
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∙ 9y ago
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How could the weimar government have solved Hyperinflation?
In fact, the inflation was stopped and the currency stabilized in 1923-24. It involved massive deflation and was successful.
When nominal GDP is less than real GDP is this inflation or deflation?
deflation
Is a rise in the cost of goods and services called inflation or deflation?
Inflation
True or false Inflation refers to a dramatic drop in prices?
False!Inflation means a dramatic increase in prices. The opposite of inflation is deflation. Deflation is a dramatic decrease in prices.
What is more desirable inflation or deflation?
It depends ..
What is a decrease in the price level?
Inflation
In the absence of unexpected shocks does the economy tend to experience inflation or deflation?
inflation
Lowest inflation rate in world?
The lowest inflation rate in the world is 0% in Japan. There are countries in which there is a negative inflation, but these cases are not called low inflation, they are called deflation. the highest deflation rate is 3% in Nauru (you may as well call it a -3% inflation)
What are the differences between inflation and deflation?
Inflation is when the value of money declines so it takes more dollars to purchase the same goods or services. Deflation is the opposite.
The changing cost of money is referred to as?
Inflation/deflation.
What is the CPI most likely measuring?
inflation and deflation
Is the deflation good for the economy?
yes,deflation...in my own opinion is good to the country,but permit me to say the little i know about (inflation) and( deflation).inflation...means when there is excess of money circulating within a given country while deflation means when there is less money.......so deflation is good for a country in a way that,there will be no inappropraite in terms of goods and services,,
