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Deflation

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Deflation is the just reverse to inflation. In inflation, the price level rises whereas in deflation, the price level goes down - prices and costs go down. On the face of it, it looks that the falling prices are fins, but it is not always so. Deflation brings with it many economic complications too though sometimes the phenomenon of deflation is really welcome from the point of view of a consumer, an individual buying household goods or articles or a corporate scouting for raw materials in the international market.

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