Inflation vs Deflation
Inflation vs Deflation
Inflation is a condition in which the value of money decreases. While the level of goods and services within the country is constantly increasing, for example, buying something at a price of 100 baht may not get the same amount. like in the previous year But inflation is regulated by the central bank. to avoid excessive inflation Because if inflation is at the right level, it will produce good results as follows
- People will feel more money. make it out to spend more
- Producers can increase production
- make the economy grow
Deflation is negative inflation. It is the condition of the level of prices of goods and services continually decreasing. resulting in the following negative effects:
- People don't have money to spend.
- Manufacturers have to reduce production.
- causing an economic recession
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