cause of deflation | BTCC Knowledge

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Deflation is a decrease in the general price level of goods and services over time, typically caused by a reduction in the money supply. It can occur during economic downturns or when governments implement austerity measures. Deflation can have negative consequences, including increased debt burdens, reduced consumer spending, and potential deflationary spirals. Understanding the causes and consequences of deflation is crucial for policymakers and investors alike.

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