Deflation is the decline in prices for goods and services that happens when the inflation rate dips below 0%.
| Deflation | Deflation is a general decline in prices for goods and services, typically associated with a contraction in the supply of money and credit in the economy. During deflation, the purchasing power of currency rises over time. | Read More » | Can Deflation Be Good? | General economic theory consensus rules that deflation is bad for the economy. But the Swiss economy is growing despite a drop in prices. | Read More » | | Inflation | Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. | Read More » | | Central Bank | A central bank is an entity responsible for the monetary system of a nation or a group of nations. | Read More » | | Milton Friedman | Milton Friedman was an American economist and statistician best known for his strong belief in free-market capitalism. | Read More » | | Monetary Policy | Actions of a central bank or other agencies that determine the size and rate of growth of the money supply, which will affect interest rates. | Read More » | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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