Post
Topic
Board Economics
Re: Inflation and Deflation of Price and Money Supply
by
JarvisTechnology
on 27/06/2015, 07:08:39 UTC
impossible to survive   Tongue
Deflation generally occurs when the supply of goods rises faster than the supply of money, which is consistent with these factors, the supply of money goes down, the supply of other goods goes up, demand for money goes up and finally demand for other goods goes down.
Deflation of prices in a Bitcoin economy is often put forward as a major reason not to depend on such a currency, as it has many ups and down phases at current stage. Smiley
Deflation in supply money usually defined as a general drop in prices of goods and services.
All such inflation and deflation occur randomly,as it part of living. Grin