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Deflation
HomeGlossary TermsDeflation

Deflation

June 24, 2023BY Ubik Capital
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Deflation is the economic phenomenon characterized by a sustained decline in prices for goods and services, leading to an increase in the value of a currency over time. Unlike inflation, which involves a general rise in prices, deflation occurs when there is a contraction in the money supply or a decrease in overall demand. As a result, individuals can purchase more goods and services with the same amount of money, thereby increasing their purchasing power.

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