Deflation Definition Investopedia

For this reason the nominal purchase price of goods may decline while the relative purchase price remains the same. It also occurs when a lower level of demand in the economy leads to an excessive drop. Deflation is an economic condition where the price of goods services and labor declines because of the increase in the purchasing power of the nations currency.
deflation definition investopedia

Debt deflation is a concept that pertains to the effects of debt on the price of properties goods and services.

Deflation definition investopedia. Deflation is the general decline of the price level of goods and services. It can be driven by an increase in productivity and the abundance of goods. Borrowers will typically experience decreasing property values from debt deflation. The increase in the purchasing power of the currency is generally related to limitations in the money supply due to economic stagnation or limited available credit.

It can reflect a glut of goods or services on the market. Deflation is a fall in the overall level of prices in an economy and an increase in the purchasing power of the currency. Deflation is usually associated with a contraction in the supply of money and credit but prices can also fall due to. Deflation is a less common occurrence than inflation.

Deflation conversely is the general decline in prices for goods and services indicated by an inflation rate. Inflation is an increase in the general prices of goods and services in an economy.