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Why is the fed afraid of deflation?

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Anonymous

13y ago
Updated: 8/20/2019

Why is the central bank afraid of deflation

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Wiki User

13y ago

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What would happen to real short term interest rates if the Fed kept short term market interest rates at zero and deflation occurred and was expected to continue?

Macroeconomics Question: What would happen to real short term interest rates if the Fed kept short term market interest rates at zero and deflation occurred and was expected to continue?


Define deflation explain merits and demerits of deflation?

merits and demerits of deflation


What is deflation of of?

Deflation is when a currency becomes worthless. An Advantage of deflation is that there is less poverty and things become more affordable.


When was Deflation - film - created?

Deflation - film - was created in 2001.


What are the disadvantages of deflation?

Deflation is the fall of the general price market. The disadvantages of deflation are large levels of unemployment and an unstable economy.


What do you understand by the concept of deflation and the cause of deflation?

an increase in which exceeds the supply


What is the duration of Deflation film?

The duration of Deflation - film - is 180.0 seconds.


Do interest rates rise during deflation?

yes they do rise during deflation


When nominal GDP is less than real GDP is this inflation or deflation?

deflation


Economic condition in which the price of goods and services drops?

Deflation by: Andrea Burke


What is wind deflation?

Wind deflation is the process of blowing away the loose materials from the surface


What are the similarities of deflation and runoff?

there are no similarities deflation is caused by wind and runofff is running water