Currently we are still at the crossroads of beating the current economic recession, and one effect of this has been “deflation” in some sectors of our economies. What is deflation, and what are its actual effects?
Our economies are all different, despite the fact that most Countries do follow the free market economic modal to some degree. After 2008, interest rates were lowered to encourage savers to spend, as the great recession kicked in, and one effect of this has been deflation in some sectors of all our economies.
Deflation in academic terms is the effect of goods and services decreasing in price, usually in a recession, but in the business world common when some new products naturally decrease in price over time eg. com