A reduction in the amount of money in circulation. Such a reduction, ceteris paribus, can drive down prices. A drop in prices, called price deflation, can also occur due to an increase in productivity or in increase in demand for money
OCTOBER 15, 2010
NOVEMBER 21, 2008
With the stock market crumbling and the economy shrinking, a whiff of deflation is in the air.... But economists warn that sustained deflation -- a period of falling overall prices -- would deepen the nation's economic troubles. (Washington Post, Friday)
When will we realize that money is too important to be trusted to government?
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The Dreaded D Word by Christopher Mayer
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