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
moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 100 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.
Advertisement
moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom.
