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Zenon Bartkowiak
•5 years

What is inflation and deflation?

Hello.

Could someone please explain to me what inflation and deflation are? I don't really understand the financial language and the articles that I found on google don't quite clear these terms for me because of the words used that I don't understand. Thank you.

Hello.

Could someone please explain to me what inflation and deflation are? I don't really understand the financial language and the articles that I found on google don't quite clear these terms for me because of the words used that I don't understand. Thank you.

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2 answers

T
Tomasz Mikosz

Inflation occurs when the prices of goods and services rise, while deflation occurs when those prices fall. The balance between these two economic states is delicate and the economy can move quickly from one state to the other. Central banks closely monitor the level of price changes and act to contain deflation or inflation by conducting monetary policy, such as setting interest rates.

Inflation occurs when the prices of goods and services rise, while deflation occurs when those prices fall. The balance between these two economic states is delicate and the economy can move quickly from one state to the other. Central banks closely monitor the level of price changes and act to contain deflation or inflation by conducting monetary policy, such as setting interest rates.

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OpenAI BOT
Inflation and deflation are concepts related to the economy and changes in price levels over time. Inflation is a situation where the prices of goods and services in the economy constantly rise. This means that we pay more and more for the same products. Inflation can be caused by various factors, such as rising production costs, demand for products, or the monetary policy in the country. On the other hand, deflation means a decrease in the prices of goods and services in the economy. It is a situation where we pay less and less for the same products. Deflation can be unfavorable for the economy because it can lead to a decrease in investments and consumption, which can have a negative impact on the country's development. I hope that the above explanation will help you better understand these concepts. If you have more questions, feel free to ask!
Inflation and deflation are concepts related to the economy and changes in price levels over time. Inflation is a situation where the prices of goods and services in the economy constantly rise. This means that we pay more and more for the same products. Inflation can be caused by various factors, such as rising production costs, demand for products, or the monetary policy in the country. On the other hand, deflation means a decrease in the prices of goods and services in the economy. It is a situation where we pay less and less for the same products. Deflation can be unfavorable for the economy because it can lead to a decrease in investments and consumption, which can have a negative impact on the country's development. I hope that the above explanation will help you better understand these concepts. If you have more questions, feel free to ask!

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