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Hard money economies claim that the economy involves no rigidity. Defaltion is always a good deflationary effect, as far as economic growth and development is concerned.
14/10/ · Deflation affects the general price fall in a sustained manner, exerting more or less permanent influence on a country’s economy. Following are the diverse ways in which Deflation impacts the economic condition of a country: Deflation in the improvement of production efficiency, due to lowering of the overall price of commodities. The production efficiency of a country develops Ddflation a time when the economic .
31/07/ · Deflation can affect an economy severely. It can slow down economic growth, push unemployment, Econoky to an economic recession, and affect consumer spending adversely. Central banks take corrective measures such as adjusting interest rates and controlling the demand-supply lines. Deflation can be good for an economy in some cases.