Features of Deflation:
- Deflation is a monetary phenomenon caused by a fall in the supply of money.
- The fall in prices level is marked and persistent.
- The fall in prices is not confined to any specific goods, but extends to all goods. In other words, there is a fall in the general price level during deflation.
- During deflation, the fall in the general price level is accompanied by a fall in rise in the value of money.
- Deflation is man-made. It arises out of the government, the Central Bank, Commercial Banks, Businessmen, etc.