Inflation vs Deflation: What's the Difference?
Deflation means the general price level is falling; the key word is general.
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1.What is deflation?
Deflation means the general price level is falling; the key word is general.
2.What is disinflation?
Disinflation means prices still rise, just more slowly than before.
3.After five years at plus 2 percent a year, a basket of 100 costs about what?
At plus 2 percent a year for five years the basket costs about 110; at minus 2 percent it costs about 90.
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Sources (4)
- What is inflation and is it connected to the Fed's goal of price stability? (FAQ) (Board of Governors of the Federal Reserve System)
- Price stability (ECB Strategy) (European Central Bank)
- Understanding Deflation (FRBSF Economic Letter 2004-08) (Federal Reserve Bank of San Francisco (Autor: Tao Wu))
- Eigene Rechnung: feste Summe 10.000 unter +2 %
Education only. Not financial advice.