Though steadily falling prices over a prolonged period sounds like a good thing, deflation is the ultimate vicious cycle. When the money supply decreases due to tight credit, a terrible cascade of negative reactions ensues, often leading to severe economic contraction, recession, or depression. If there is too little money circulating in the economy, demand for goods drops, as do prices. If companies sell less at a lower profit, they cut back on manufacturing of existing products and development of new ones. They eventually ...
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Though steadily falling prices over a prolonged period sounds like a good thing, deflation is the ultimate vicious cycle. When the money supply decreases due to tight credit, a terrible cascade of negative reactions ensues, often leading to severe economic contraction, recession, or depression. If there is too little money circulating in the economy, demand for goods drops, as do prices. If companies sell less at a lower profit, they cut back on manufacturing of existing products and development of new ones. They eventually are forced to release workers. Unemployed workers spend even less on consumer goods, so demand and prices dip even lower. More layoffs occur, and the negative cycle deepens. This book is an invaluable guide to this most dangerous of economic cycles and offers the power of knowledge, helping readers to adapt to shifting economic trends with comprehension, historical perspective, and sound advice and strategies.
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Add this copy of How Deflation Works to cart. $20.61, very good condition, Sold by ThriftBooks-Atlanta rated 5.0 out of 5 stars, ships from Austell, GA, UNITED STATES, published 2010 by Rosen Young Adult.
Add this copy of How Deflation Works to cart. $20.61, good condition, Sold by ThriftBooks-Baltimore rated 5.0 out of 5 stars, ships from Halethorpe, MD, UNITED STATES, published 2010 by Rosen Young Adult.
Add this copy of How Deflation Works (Real World Economics) to cart. $49.44, good condition, Sold by Bonita rated 4.0 out of 5 stars, ships from Santa Clarita, CA, UNITED STATES, published 2010 by Rosen Pub Group.
