I was recently reading an article in one of the daily newspapers where the contributor was giving his insight into the ins and outs of our current financial difficulties. Problem was, he was throwing out words left right and centre that mightn’t always be known by everyone reading the paper. Here’s a few along the same lines that are worth knowing:
- Inflation – The overall general upward price movement of goods and services in an economy (but then again, that’s an easy one).
- Disinflation – A slowing of the rate at which prices increase. Typically, this occurs during a recession as sales drop and retailers are not able to pass on higher prices to customers.
- Deflation – A decline in general price levels, often caused by a reduction in the supply of money or credit.
- Hyperinflation – A period of rapid inflation that leaves a country’s currency virtually worthless.
- Stagflation – High inflation and high unemployment (stagnation) occurring simultaneously.
It’s worth checking out any of those links if you want any further information.