Your Money: Understanding Inflation, Deflation

[kalm77]

DEFLATION: falling consumer demand in presence of excess capacity. that explains the Uncle Sammy's present condition

[Dozzer]

Well that doesn't explain anything at all. Try making your videos longer than a minute, and maybe we can get some information here.

[ubuibiok]

Depression, a sustained downturn in one or more economies. It's more severe than a recession, which is a downturn in 2 or more business cycle.

Depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation is a common elements of a depression.

Were there.

[TECHKLEC]

It can always get worse. A few months ago, economists were freaking out over a 1% monthly inflationary jump in the consumer price index. This month, they go nuts over a 1% drop in the same index, so now it's "deflation". Iv'e heard the term "market correction" thrown around in the past, but my head is still spinning from all this "volatile liquidity".

[ubuibiok]

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