The Value Of Money In Deflation / Deflation Intelligent Economist
The Value Of Money In Deflation / Deflation Intelligent Economist. It can be driven by an increase in productivity and the abundance of goods. During the great depression, money gained in value as a result of deflation. Most debt payments, such as mortgages, are fixed, and when prices fall during deflation, the cost of debt remains at the old level. If the inflation rate is negative, i.e., below 0%, then the economy is experiencing deflation. This is the opposite of inflation, which is when general prices rise over time.
This is the opposite of inflation, which is when general prices rise over time. Either the value of our assets will be destroyed, or the value of our money will be destroyed. Normally, economies are inflationary over the long term. (iii) deflation increases the value of money which raises the load of public loans and government and there is a bad effect on the economy. So it stands to reason that keeping high levels of cash will increase your purchasing power.
