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LBRY Claims • canadian-consumer-prices-make-biggest

764f131f57a1a0781e8c4e229e967b28e95885c2

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3 Aug 2021 23:43:20 UTC
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Canadian Consumer Prices Make Biggest CRASH
Inflation Versus Deflation
Quick review of inflation and deflation for the folks that don’t use the terms daily. Inflation is when prices rise, and is caused by an increase in demand for goods and services. Supply shortages, economic booms leading to higher consumption – whatever the reason. Consumers will pay more, and inflation measures like CPI will rise. Generally, this is a good thing – as long as it’s low and stable like in the past few decades.

Deflation occurs when goods and services are in excess supply for the demand. The surplus can be because you’re making more relative to demand (computer equipment), in which case it can be a good thing. Or a sudden drop in demand because people can’t buy things due to unemployment – which is a bad thing. If the whole index is being dragged lower, it’s almost always a negative event. Not by itself, but due to the market mechanics that follow.


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https://www.youtube.com/watch?v=A9S3rC0HSts
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