Finance

Inflation vs. Deflation – Its Impact on the Global Economy

Inflation vs. Deflation and Its Impact on the Global Economy-Differences Between Inflation and Deflation

Two diametrically opposed economic phenomena that have significant effects on the world economy are inflation and deflation. Deflation occurs when prices decrease, while inflation involves a general increase in the costs of goods and services. These phenomena have substantial impacts on government, business, and consumer behavior, influencing investment decisions, spending habits, and overall economic stability.

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