Financial Dictionary
Investment Word
Atlantic Financial
Atlantic Financial
Investment Word
Deflation
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.
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