Opinions on Deflation

Here you have a list of opinions about Deflation and you can also give us your opinion about it.
You will see other people's opinions about Deflation and you will find out what the others say about it.
Also, you will see opinions about other terms. Do not forget to leave your opinion about this topic and others related.



For other uses, see Deflation (disambiguation).
Not to be confused with Disinflation.

In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). This should not be confused with disinflation, a slow-down in the inflation rate (i.e., when inflation declines to lower levels). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money –- the currency of a national or regional economy. This allows one to buy more goods with the same amount of money over time.

Economists generally believe that deflation is a problem in a modern economy because it increases the real value of debt, and may aggravate recessions and lead to a deflationary spiral.

Although the values of capital assets are often casually said to "deflate" when they decline, this should not be confused with deflation as a defined term; a more accurate description for a decrease in the value of a capital asset is economic depreciation (which should not be confused with the accounting convention of depreciation, which are standards to determine a decrease in values of capital assets when market values are not readily available or practical).


In the image below, you can see a graph with the evolution of the times that people look for Deflation. And below it, you can see how many pieces of news have been created about Deflation in the last years.
Thanks to this graph, we can see the interest Deflation has and the evolution of its popularity.

What do you think of Deflation?

You can leave your opinion about Deflation here as well as read the comments and opinions from other people about the topic.
It's important that all of us leave our opinions about Deflation to have a better knowledge about it: