effects of deflation | BTCC Knowledge

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Deflation, a decrease in the general price level of goods and services, can have severe economic consequences. Charlie Munger warns of its dangers, while Jim Rickards predicts a swift transition from inflation to deflation. Deflation can be caused by a decline in money supply, increased productivity, or a decrease in consumer spending. Its consequences include reduced borrowing, increased savings, and potentially a deflationary spiral. Understanding deflation is crucial for financial stability.

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