Inflation appears to be a rise in the price of goods and of real goods, but the essence is more likely to be seen as a decline in currency and credit value
(Exchange rate of gold and currency, exchange rate of currency and goods)
Deflation is defined as a decline in prices and an increase in the value of currency (currency).
In other words, inflation and deflation are viewed as a phenomenon that has the property of currency
Price changes due to other factors
It can be defined as a non inflationary price rise
It is the cash-induced-price change and the 'product-induced
(goods-induced) price change.
The term inflation and deflation was originally a concept with the meaning of currency (money).
In this regard, the Myself explained:
Inflation and deflation were not created by economists, but were concepts derived from the mouths of the general public and politicians.
On the basis of this concept is the error or illusion that there is something like money that guarantees neutral currency or stable purchasing power.
From this point of view, inflation means that cash-induced changes (depreciation of the currency)
, And deflation means a change in cash (rise in currency value)
It means a situation where purchasing power is increased
Even if inflation occurs,
There are some who see profit, others who see loss.
The opposite is true of deflation.
