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what is deflation | Causes of Deflation | Consequences of deflation | deflation explained

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In this video, Thomas J Stanley will teach us about deflation. Deflation is a decrease in the prices of goods or services, and is the opposite of inflation. The two causes of deflation are an increase in supply and a decrease in demand. The consequences of deflation include an increase in unemployment, a rise in the real cost of borrowing, and falling asset prices. Ways to control deflation include currency expansion, credit expansion, foreign trade policy, regulation of production, consumer credit, tax decrease, public works, and new investment.

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