Deflation

Detailed Analysis

 While lower prices sound good, persistent deflation can be dangerous. It encourages people to stop spending because they expect prices to fall further, which can lead to business failures and job losses. Central banks fight deflation as aggressively as inflation, usually by lowering interest rates to encourage borrowing and keep the economy moving

Applied Insights: Deflation

New insights for this term are coming soon.

Disclaimer: Educational information only. CashFervor does not provide financial advice.