βοΈ αααααΉαααααΆαα
– ααα·αααααααΆ ααΊααΆααΆαααααααααα·α
αα
αααααααΎααΎααααΈαα·αααααΆα’αααΈααΆαααα
α»ααααααααααΌαα
αααααα·α αα·αααααΆαααααα
αααα»αααααααα·α
αα
αααα»ααααααααα½αα
– ααα·αααααααΆ ααΊααΆααΆαααα
α»ααααααααααΌαα
αααααα·α αα·αααααΆαααα αααα’αΆα
αααααΆαααααΈαααααΆαα½αα
ααα½αααΌα
ααΆ ααΆαααα
α»αααααΆαα
αααΆαααααα’αααααααΎααααΆαα ααΆαααΏαααΏααααα
αα
αααα·ααααΆ ααΆααααααααααααΎαααα·ααααα αα·αααΆαααα·ααααα·αααΎαααΆααΎαα
– αααααααΆααααααα·αααααααΆααΊααΆαααααΆααα
α»ααααααααα
– ααΎααααΈαααα±ααααΆαα
αααΆααααΈααα·αααααααΆ ααΎαα
αΆαααΆα
αααΆαααααα»αααΆαααααααααααΆααΆαα½αααΉαααααΆααΈααααααΆ ααΊα’αα·ααααΆα
– αααΆααΆααααααΆαααΎααα½ααΆααΈαααΆαααααΆαααααα»αααΆααααααααΆαα αα·ααααααααΆααα·ααααα·ααα·αααααααΆα
– ααΎααΎααα½αααααα ααα·αααααααΆαααα’αΆα
α αΆααααΌα
αααααααααα’αααααααααα·α
αα
αααααααΆααααααααααΆαα
ααΉαααΆαααα½αααΆαααΆααααα
α»αααααααααα·αα
βοΈ ααααααααααΈααα·αααααααΆ
ααα·αααααααΆ ααΊααΆααΆαααααααααα·α
αα
αααααααΎααΎααααΈαα·αααααΆα’αααΈααΆαααα
α»ααααααααααΌαα
αααααα·α αα·αααααΆαααααα
αααα»αααααααα·α
αα
αααα»ααααααααα½αα αααααΆααα·αααα ααΆααΊαααα»αααΈα’αα·ααααΆ αααααΆαααααααααΉαααΆαααΎαα‘αΎααααααααΆαααααααααΆαααα
ααΎαααα·α αα·αααααΆααααα

βοΈ ααΌαα ααα»ααααα·αααααααΆ
ααα·αααααααΆ ααΊααΆααΆαααα
α»ααααααααααΌαα
αααααα·α αα·αααααΆαααα αααα’αΆα
αααααΆαααααΈαααααΆαα½αα
ααα½αααΌα
ααΆ ααΆαααα
α»αααααΆαα
αααΆαααααα’αααααααΎααααΆαα ααΆαααΏαααΏααααα
αα
αααα·ααααΆ ααΆααααααααααααΎαααα·ααααα αα·αααΆαααα·ααααα·αααΎαααΆααΎαα ααΆαααααΆααα
α»αααααααααααα·α ααααα·ααααα»ααααααα’αΆα
ααΆαα±ααααΆαααΆαααΆαααααααααΆαα
αααΆα αα·αααΆαααα·αααααααΆααααΆαααααα½ααααααΆαααααααααααΈααααΆαααΆαααΆα α¬ααααααααααααααα·ααααααα’αΆα
αα½αα
ααααααααααααΆαααα·αααααααΆαααααα ααΆαααααα
ααα ααααααααααααααα·α
αα
ααα αα·αααΆαααααΉααα»αααααα·αααααααΆααΆαααα’ααΆααα’αΆα
ααααΎα±ααααΆαα»ααΌααααααΆααααααααααααα αααααΆααα
αααααΆαααα
α»ααααααααΌαααΆα αα·αα’αααα·αααΆαααααααα·α
αα
ααΆααααααα
ααα·αααααααΆα’αΆα αααααΆαααααΈαααααΆαα·αααααΆααα½αα ααα½αααΌα ααΆααΆαα αααααααα·ααα αα αααα·ααααΆα αααααΆααα·αααα ααααα·αααΎααΆαααααα·αααα·αααααααΆααααααααα αααααΆα’αΆα ααα₯αααα·ααα’αΆααααααααααααααα·α αα ααΌα ααΆ ααΆαααΆαααααααααααΎαααααααα·α αα ααΆαααΎαα‘αΎαααΆαα’ααααΆαααΆαααααΎ αα·αα’αααα·αααΆαα α·ααααααααα»ααΆααΎαα ααΌα αααα αααΆααΆααααααΆα αα·αα’ααααααααΎαααααααααΆαααΆααΏαααααααα’αα»αααααα·ααΆαααΆαααΎααααΈααΆαααΆαααααα·αααα·αααααααΆαα»αααΆαααααΆαααΆαααααααααα ααααα·ααΆαααΆααααα»αααΆααααααααΆαααααααΆαααΌα ααΆα ααααααααΆαααΌαα·αααααα» αα·αααΆαααΎαααα ααΎααααΈαααα»ααααααΌαααΆα αα·ααααααΆααααα·αα’αα·ααααΆα±ααααΆααααα·αααΆαα
βοΈ αααααααΆααααααα·αααααααΆ
αααααααΆααααααα·αααααααΆααΊααΆαααααΆααα
α»ααααααααα ααΆααααααααααααα·α
αα
αααααααΆααααααα·αααααααΆα’αΆα
ααΆαα±ααααΆαααΆαααα
α»αααααΆαα
αααΆαααααα’αααααααΎααααΆαα ααΆαααααααααΆααα·αα·αααα’αΆααΈααααα αα·αααΆαααααΆααα
α»ααααααΆαα»αααα
αααα»ααααααααΆαααααααα·α
αα
α αααααΆααα’αΆααΈααααα ααα·αααααααΆα’αΆα
αααααααα αΆααααα ααΌα
ααΆααΆαααααΆααα
α»αααααααΆααα
αααα αα·αααΆαααααααααΆαα
αααΆαααΆααΎαα
βοΈ α’αα·ααααΆ vs ααα·αααααααΆ
ααΎααααΈαααα±ααααΆαα
αααΆααααΈααα·αααααααΆ ααΎαα
αΆαααΆα
αααΆαααααα»αααΆαααααααααααΆααΆαα½αααΉαααααΆααΈααααααΆ ααΊα’αα·ααααΆα ααα·αααααααΆααΊααΆααΆαααα
α»αααααααα ααΈα―α’αα·ααααΆαα·αααΊααΆααΆαααΎαα‘αΎααααααα α
ααα»α
ααΈαα½αααα»αααααααΆααα»ααααααααα·αα·ααα»ααα·ααααα·ααααααΆα ααΆα§ααΆα ααα α’αα·ααααΆααααα·αααααα (Moderate Inflation) α’αΆα
ααΎαααΉαα
α·ααααααααΆαα
αααΆα αα·αααΆααα·αα·ααααααααα ααα»ααααααααα·αααΎααΆαα’ααααΆα’αα·ααααΆα
αααΎαααα αααααΆα’αΆα
ααααααΆαααΆαααααααααααααααΆααα αααα»ααα
αα·α ααα·αααααααΆα’αΆα
ααααααααααααααααααα’αααααααΎααααΆααααΆααααααΆααααααΎαα’αααΆα
αα·ααααααα½ααα ααα»ααααααΆααα’αΆα
ααΆαα±ααααΆαααΆαααΆααααΆααααααααα·α
αα
ααΆααααααα
βοΈ ααΆαααΆαααΆα αα·αααααα»ααααααααΆααααΉαααα·αααααααΆ
αααΆααΆααααααΆαααΎααα½ααΆααΈαααΆαααααΆαααααα»αααΆααααααααΆαα αα·ααααααααΆααα·ααααα·ααα·αααααααΆα αα½αααα’αΆα
ααααΎα§αααααααααααααΆαααΌαα·αααααα» ααΌα
ααΆααΆααααα
α»αα’ααααΆααΆαααααΆαα α¬α
αΌααα½ααααα»αααΆαααααα»αα±ααααΆαααΆααα·αααααααααααα ααΎααααΈαααα»αα±ααααΆαααΆαα
αααΆα αα·αααΆααα·αα·ααα αα
ααααααααΆααααααΆαααα·αααααααΆααΎαα‘αΎαα αααααΆαα·ααΆαααα’αΆα
α’αα»ααααααααααααΆαααΆαααΎαααα ααΌα
ααΆααΆααααααΎαααΆαα
αααΆααααααααααΆαα·ααΆα ααΎααααΈαααα»αα±ααααΆααααααΌαααΆααα
αααα»αααααααα·α
αα
αα·ααααααα
βοΈ ααΎααα·αααααααΆαααααααααα’ α¬α’αΆααααα?
ααα·αααααααΆααΊααΆααΆαα»ααΌαααααααα·α
αα
αααααααααααα·α αα·αααααΆααααααΌαα
αααα»αααααααα·α
αα
ααααΆααα
α»αααΆαααααααααΆααααΆααααααααΆααΆαα½αα ααΎααΎααα½αααααα ααα·αααααααΆαααα’αΆα
α αΆααααΌα
αααααααααα’αααααααααα·α
αα
αααααααΆααααααααααΆαα
ααΉαααΆαααα½αααΆαααΆααααα
α»αααααααααα·αα αααααΆαααΆαααΆααααα ααΆα’αΆα
ααΆαααα’αα·αααααΆααα
ααααααααΆααααααΆαααα·αααααααΆααααααααα αα
αααααααααααααααααααΆααα
α»α ααα»αααα’αΆα
αααααΆααααααΆααα·ααααααα½ααα αααααααΉαααΆαααααααΆααααααΆαααΆαααα’ααΆααα αααα’αΆα
ααΆαα±ααααΆαααΆαααΆαααααααααΆαα
αααΆαααααα’αααααααΎααααΆαα ααααΆααα
ααααα’αΆααΈαααααααΆα α αΎααααα»αααααΈαααα ααα’αΆα
ααΆαααΆαααΆααααΆααααααααα·α
αα
α¬αα·ααααα·ααααααα·α
αα
ααΆααααααα
| English Version |
βοΈ Key takeaway
– Deflation is an economic term used to describe a sustained decrease in the general price level of goods and services within an economy over a period of time.
– Deflation, a sustained decrease in the general price level of goods and services, can be caused by factors such as decreased consumer spending, rapid technological advancements lowering production costs, and excess production capacity.
– Deflation’s effects extend beyond just falling prices.
– To comprehend deflation fully, it’s essential to compare it with its counterpart, inflation.
– Central banks play a crucial role in preventing and addressing deflation.
– At first glance, this might seem like a good thing, similar to getting discounts during a sale.
βοΈ Understanding about deflation
Deflation is an economic term used to describe a sustained decrease in the general price level of goods and services within an economy over a period of time. In other words, it is the opposite of inflation, which involves a consistent increase in prices.

βοΈ Causes of Deflation
Deflation, a sustained decrease in the general price level of goods and services, can be caused by factors such as decreased consumer spending, rapid technological advancements lowering production costs, and excess production capacity. Falling commodity prices, high levels of debt that lead to reduced spending, and wage deflation due to labor market conditions or automation can also contribute to deflationary pressures. Furthermore, global economic conditions and expectations of future deflation can exacerbate the phenomenon, leading to reduced demand and economic instability.
It’s essential to recognize that while deflation can result from positive factors like technological innovation, persistent and severe deflation can have detrimental effects on an economy, including reduced economic growth, increased unemployment, and financial instability. Therefore, central banks and policymakers often implement measures to prevent deflation from becoming too severe, such as monetary and fiscal policies to stimulate demand and maintain a stable level of inflation.
βοΈ Impact of Deflation
Deflation’s effects extend beyond just falling prices. Economically, it can lead to decreased consumer spending, reduced business investment, and a potential downward spiral in economic activity. For businesses, deflation can pose challenges as they grapple with shrinking profit margins and the need to cut costs.
βοΈ Deflation vs. Inflation
To comprehend deflation fully, it’s essential to compare it with its counterpart, inflation. While deflation involves a sustained decrease in prices, inflation is characterized by rising prices. Each has its pros and cons. For instance, moderate inflation can encourage spending and investment, but too much can erode savings. Conversely, deflation can benefit consumers by increasing their purchasing power, but it may lead to economic stagnation.
βοΈ Preventing and Combating Deflation
Central banks play a crucial role in preventing and addressing deflation. They can use monetary policy tools, like lowering interest rates or engaging in quantitative easing (buying assets), to stimulate spending and investment when deflationary pressures emerge. Governments can also implement fiscal policies, such as increased government spending, to boost demand in the economy.
βοΈ Is deflation good or bad?
Deflation is an economic phenomenon where the general prices of goods and services in an economy consistently decrease over time. At first glance, this might seem like a good thing, similar to getting discounts during a sale. However, it can have negative consequences when taken to extremes. When prices keep falling, people may delay their purchases, expecting even lower prices in the future. This can lead to reduced consumer spending, lower business profits, and, in some cases, economic stagnation or recession.