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| Topic: |
Business
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| Number of pages / Number of words: |
11 / 2843 |
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Also, when inflation is close to zero there is more risk of deflation. Deflation is when there is a nation wide fall in prices. Sounds good if you're a consumer, but really it is just as bad as inflation. A prolonged deflation, like the great depression, can lead to significant declines in home and business values...
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A prolonged deflation, like the great depression, can lead to significant declines in home and business values. Also, with low prices come low interest rates, and less room for the fed to stimulate the economy. The main goal is to keep the economy steady, not too high or low. The feds monitor the stock market closely too, for indicators on the economy...
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