Deflation

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Deflation. 1 connected concept: Money supply (related to).

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Community · Velocity of money

Summary

In economics, deflation is an increase in the real value of the monetary unit of account, as reflected in a decrease in the general price level of goods and services exchanged, measurable by broad price indices.

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a condition often caused by a contraction in money supply
A significant decrease in the money supply relative to the output of goods and services can lead to deflation, increasing the purchasing power of money.
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