Deflation is the opposite of inflation. It occurs when the value of money increases over an extended period. The prices of goods go down so your money buys more.
When this happens, most consumers tend to hoard cash rather than investing in commodities. Deflation often accompanies a recession.
See also: Inflation
More on this topic:
Deflation calculator
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moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom.
