Inflation Vs Deflation

humagillani · August 17, 2006, 5:50pm

well i would like to know that which one is more dangerous?
well i want to know that which one brings more depression to a country inflation or deflation???

waiting for reply…

thanx
take care

yo_wasim · August 17, 2006, 8:47pm

Re: Inflation Vs Deflation

You can start reading from post #5 in the below link, covers inflation, deflation and recession.
Except for stagflation i hope
http://www.paklinks.com/gs/showthread.php?t=219350&highlight=inflation

humagillani · August 19, 2006, 9:24am

Re: Inflation Vs Deflation

thank you

junaid001 · August 31, 2006, 4:45am

Re: Inflation Vs Deflation

both can bring depression but deflation seems tobe more dangerous means economy stagnant,can be sign that demand is lower or not growing for goods and services it would cause lesser production and more unemployment.
controlled infaltion can be a good sign it means economy is growing and in many cases means spending is higher also.
inflation or deflation are direct caused but its demand and supply mix which causes any one of both.

jaanaan · September 13, 2006, 3:42pm

Re: Inflation Vs Deflation

anything that is excessive is bad. usually low inflation is considered good inflation since it raises prices, which in turn is an incentive for investment. but if it spirals out of control, then investment can not be brought.
deflation is good for society that has had high periods of inflation.Paul volcker did that in the late seventies to check inflation.