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Forex Terms
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D- DA DE DI DM DO DR DU
DEA DEF DEL DEP DER DES DET DEU DEV

Deflation

A deep and long-lasting decrease in the price of goods and services within an economy. It is the opposite of inflation which is an escalation in prices. An extended period of deflation can lead to a deflationary spiral - this is a decrease in prices resulting from reduced demand for goods and services which leads to lower employment. With fewer people earning wages, demand falls even more and further perpetuates the cycle.

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