Deflation

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    Deflation

    What is deflation?

    Deflation is the state of negative inflation. In a deflation, money becomes more valuable and goods become cheaper when measured in the deflating currency.

    One of the big dangers of deflation is that people and companies have an incentive not to invest their capital, as the money will buy more goods and services tomorrow.

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    If you are a forex trader, read about the effects of inflation and deflation:

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