What is the major difference between Inflation and Deflation?
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- eAnswers...Apr 2, 2014
The term "Inflation" generally implies the increase in the prices of goods and items in an economy over a certain period of time. It refers to the loss of value of money and power. Whenever the period of inflation starts, it does not allow people to buy as much goods as they used to buy when there was no inflation.
The term "Deflation" is exactly opposite to the term "Inflation". Generally, it implies the decrease in the prices of the goods and items. It allows people to buy more items and goods in same amount of money over a certain period of time. It occurs only when there is zero percent inflation in the market.
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