Purchase Solution

Danger of Inflation and Deflation

Not what you're looking for?

Ask Custom Question

Which one, inflation or deflation, is more dangerous to the economic growth of the economy in the short-term and the long-term? I tried searching the Internet and cannot find anything about the short-term and long-term effects. Obviously, I found plenty of information concerning the effects of both. Also, I could not identify which one was more dangerous as I would think hyper-inflation would be as dangerous if not more dangerous than deflation.

Purchase this Solution

Solution Summary

The solution discusses whether inflation or deflation are more dangerous.

Solution Preview

Answer:

Inflation is a phenomenon when the value of currency decreases and the price of goods increase whereas deflation can be defined as a phenomenon when the price of goods decreases and the value of money increases. It is said that inflation is worse than deflation in short run ...

Solution provided by:
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
Recent Feedback
  • "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
  • "thank you!"
  • "Thank you again Jayant. You are super fast. "
  • "Thank you Jayant. You are appreciated. "
  • "Again, thank you Jayant. You are wonderful. "
Purchase this Solution


Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Operations Management

This quiz tests a student's knowledge about Operations Management

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.