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Currency deflation refers to the decrease in the general price level of goods and services, which increases the purchasing power of money. It can occur due to various factors, including reduced consumer demand, increased productivity, or a contraction in the money supply. While deflation can benefit consumers in the short term by making goods cheaper, it can lead to negative economic consequences, such as reduced business investment, lower wages, and increased unemployment, as consumers may delay purchases in anticipation of further price drops. Overall, persistent deflation can create a challenging economic environment.
What else can I help you with?
What is it called when the value of currency goes down called?
it is called deflation
What is the concept of currency control?
The concept of currency control is very essential for any economy. This is what will often regulate the rate of inflation and deflation.
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
Do interest rates rise during deflation?
yes they do rise during 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.
What is it called when the value of currency goes down called?
it is called deflation
When there is an official change in the exchange rate of domestic currency then it is called?
Deflation
What is the concept of currency control?
The concept of currency control is very essential for any economy. This is what will often regulate the rate of inflation and deflation.
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.
Where can deflation occur?
if you are talking about price deflation it can occur any where. In places that use fiat currency it is somewhat unlikely because initiating a deflation causes a recession and because the people controlling the money have to sacrifice purchase in order to take money out of circulation. In places that use commodity currency it can happen if their is a decline in the production of the commodity or an increase in demand. If you are talking about wind deflation this is most likely to happen when their is an non smooth surface such as a hill or mountain.
Define deflation explain merits and demerits of deflation?
merits and demerits of deflation
What has the author C V Myers written?
C. V. Myers has written: 'Through hell to Alaska' -- subject(s): Fiction 'The coming deflation' -- subject(s): Currency question, Deflation (Finance) 'Oil to Alaska' -- subject(s): Petroleum, Petroleum industry and trade, Transportation
When was Deflation - film - created?
Deflation - film - was created in 2001.
Why is the fed afraid of deflation?
Why is the central bank afraid of deflation
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
