Deflation is caused by the reduced velocity of currencies or the amount of currency supplied to an individual. In the commodities market this means that there are limited sources of specie, thus making deflation a theorized naturalized state for the economy to go into sometimes. The whole idea is that the population grows and economies build quicker, allowing for money for commodities to be earned faster. However, when there are not enough competitors deflation can occur. Deflation can also result from economies that become too reliant on credit and build a national debt that is hard to bring down and affects all aspects of life, causing major social cutbacks.

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