Financial Dictionary

Financial Dictionary - definitons of investment, economic and financial terms

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Deflation is a general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused
by a decrease in government, personal or investment spending.

Deflation is the opposite of inflation.
Deflation has the side effect of increased unemployment, as there is a lower level of demand within the economy.
This can lead to an economic depression.

Deflation - definition

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