Talk:Deflationary spiral: Difference between revisions
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Clarification of the words "inflation" and "deflation" |
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Might I suggest, just for the technicality of the issue, that "deflation" is actually the contraction of the ''money supply'', not the effect of rising values and prices dropping. By the same token, inflation is an ''increase'' in the money supply, which then results in higher prices and lower values on money. We use deflation/inflation to refer to the ''effects'' of the phenomenon, but it is actually the increase or decrease that is meant by inflation or deflation. | Might I suggest, just for the technicality of the issue, that "deflation" is actually the contraction of the ''money supply'', not the effect of rising values and prices dropping. By the same token, inflation is an ''increase'' in the money supply, which then results in higher prices and lower values on money. We use deflation/inflation to refer to the ''effects'' of the phenomenon, but it is actually the increase or decrease that is meant by inflation or deflation. | ||
Just a technicality. | Just a technicality. {{unsigned|MC1171611|15:56, 3 April 2012}} | ||
Revision as of 01:00, 15 August 2014
Might I suggest, just for the technicality of the issue, that "deflation" is actually the contraction of the money supply, not the effect of rising values and prices dropping. By the same token, inflation is an increase in the money supply, which then results in higher prices and lower values on money. We use deflation/inflation to refer to the effects of the phenomenon, but it is actually the increase or decrease that is meant by inflation or deflation.
Just a technicality. — Preceding unsigned comment added by MC1171611 (talk • contribs) at 15:56, 3 April 2012