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Angelina Frazier
5 November, 23:28
Describe the processes of deflation
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King Clarke
6 November, 00:44
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Deflation is a process of erosion by wind in which small particles of sediments or soil from the land surface. Erosion removes Clay, silt and fine sand from the land surface and creates blowout depressions or deflation hollows.
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Jordan Krueger
6 November, 00:56
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Deflation is a gain in the purchasing power of money, which results in a lasting fall in the general price level. This phenomenon should not be confused with disinflation, which is a slowdown in inflation, that is, a decrease in the rate of inflation.
Deflation is not a negative symmetry of inflation, because the processes and consequences it entails are different. The latter takes three forms: monetary (reduction of means of payment in circulation), financial (contraction of credit), and real (reduction of production). Deflation is a normal consequence of changes in economic structures when markets are saturated or as a result of innovations that allow productivity gains.
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