Deflation refers to a country's economic and financial condition where the prices of goods and services generally fall over a period of time. Deflation is the opposite of inflation. There are several characteristics of deflation such as falling prices of goods, falling demand, rising interest rates. reduced money circulation, etc. Deflation can be caused by several factors such as government monetary policy that is too tight, overproduction so that the supply of goods is widely available in the market, etc.
Mild, controlled and short-term deflation will greatly benefit the community, but severe and uncontrolled deflation will have a negative impact on a country's economy and finances.
Mild, controlled and short-term deflation will greatly benefit the community, but severe and uncontrolled deflation will have a negative impact on a country's economy and finances.
