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Dictionary of Financial Terms, 3rd edition by Barrons
Deflation: decline in prices of good and services;
not to be confused with disinflation which is slowing down in
the rate of price increases.
So if the prices are going up but the rate of that
is decreasing - disinflation.
Disinflation:
Price: 20, 30, 39 ,47, 54, 60, 65, 69, 72, 74, 75 -
Rate: 10, 9, 8, 7, 6, 5, 4, 3, 2, 1
Deflation:
Price: 75, 74, 73....70
Rate: does not matter.
Val.
Roger Fortier wrote:
> Anyone care to tell me what is the difference between deflation and
> disinflation? I thought these were the same but I often hear people talk
> about them as if they were seperate.
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