Deflation
Deflation is falling prices across the economy. It sounds nice but is dangerous: consumers delay purchases expecting cheaper prices, demand and wages drop, and debts grow heavier in real terms — a downward spiral that’s hard to escape.
Deflation is falling prices across the economy. It sounds nice but is dangerous: consumers delay purchases expecting cheaper prices, demand and wages drop, and debts grow heavier in real terms — a downward spiral that’s hard to escape.