Deflation - When everything becomes cheaper! | Made in Germany

Everybody knows what inflation means: prices go up, and your money is worth less. Deflation is the mirror image: everything becomes cheaper, with less money in circulation. Consumers and investors then start to hold back in anticipation.December 2014 saw prices in the euro zone drop for the first time in more than five years - a total of 0.2 percent compared to the previous year. That happened even though the European Central Bank has tried for months to prevent deflation.

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