Inflation

In the simplest of terms:

Inflation       vs.    Deflation      Factor
Increase          vs.      Decline            in the price of products or services
Assets              vs.      Cash                 preferred holdings
Encourages    vs.      Discourages    borrowing
Increase          vs.      Decline            of the money supply

Both involve the fluctuation of prices. Both have common causes and effects. Both are greatly influenced by how the government manages the money supply for a nation. But how do these factors interact with each other?

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