Inflation vs Deflation

April 14, 2009

Excellent graphical explanation of inflation and deflation. Click the links to check it out.

Inflation. It’s bad right? When prices rise your money is worth less and nobody wants to see their hard earned cash decline in value. But what is inflation anyway and what are its root causes?”

Deflation is inflation’s polar opposite. It’s what happens when prices go down and you get more bang for your buck. Sounds good right? But deflation, like inflation is complicated and much less understood than inflation.”

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