Is there a situation in which the prices decrease over a period of time and opposite of “inflation” takes place?
Usually in a developing country, such a situation does not arise, as the demand is always greater than supply. However currently Japan is experiencing “deflation” in which current prices would be less than the past prices. This is harmful to a developing economy, as units that save money would get very low interest or no interest. Hence there will be no incentive for the units to invest money in bonds, fixed deposits etc.
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