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Negative inflation means that the economy is in a deflationary period. That is, there is less money (supply of money) chasing the same amount of goods and services, leading to the increase in the value of the money.

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16y ago

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Advantages of inflation accounting?

An advantage of inflation accounting, is that it can correct problems with inflation. The negative part about inflation accounting is that it is not fair value accounting.


What is a negative inflation rate?

when prices are not getting higher but lower.


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Impact of negative inflation on India?

This is the situation where manufacturers will be benifitted as the inputs will be relatively cheaper.


What are the benefits of investing in inflation protected bond funds?

Investing in inflation-protected bond funds can help protect your investment from the negative effects of inflation. These funds typically provide a return that adjusts with inflation, helping to maintain the purchasing power of your money over time.


Is it possible for the real interest rate to be negative?

Yes, it is possible for the real interest rate to be negative. This can occur when the nominal interest rate is lower than the inflation rate, resulting in a negative real return on an investment.


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How does inflation affect the airline industry?

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