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Wednesday, September 28, 2016 6:58:44 AM
Deflation: Deflation is the opposite of inflation. It is the decrease in the price of a basket of goods and services. Deflation happens when the annual inflation rate turns negative. Such an event is usually brought about by a reduction in the money supply and/or credit.
Currency Impact
While inflation tends to decrease the purchasing power of a currency, deflation tends to result in an increase in the “real” value of money.
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