Talk:Deflationary spiral

From Bitcoin Wiki
Revision as of 15:56, 3 April 2012 by MC1171611 (talk | contribs) (Clarification of the words "inflation" and "deflation")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

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.