ZMir Posted September 10, 2008 Report Share Posted September 10, 2008 Whats the differnce between Deflation and disinflation? the teachers been trying to teach me but idont get it, thanks for trying to help out Reply Link to post Share on other sites More sharing options...
__inthemaking Posted September 10, 2008 Report Share Posted September 10, 2008 Deflation is the opposite of inflation, where you have a general decrease in price level (ie. negative). Disinflation is still inflation, just a decrease in the rate of inflation (ie. still positive). Good thing to know, this was on my econ exam this year. Reply Link to post Share on other sites More sharing options...
djshah Posted September 10, 2008 Report Share Posted September 10, 2008 What part of the syllabus does this fall under? Macroeconomics?? Because we kind of started inflation but my teacher never mentioned this... Not yet... So disinflation means there is an increase in prices but at a slower rate?? Reply Link to post Share on other sites More sharing options...
__inthemaking Posted September 10, 2008 Report Share Posted September 10, 2008 That is correct. Here's a picture of what disinflation looks like: [url="http://www.annaly.com/mc/2003/003/chart_1.gif"]Disinflation[/url] As you can see, there is still inflation, but not as much as previous years. Reply Link to post Share on other sites More sharing options...
mane Posted October 6, 2008 Report Share Posted October 6, 2008 disinflation (the falling rate of inflation) means that inflation exists, but it is slowing down compared to the previous years, so the price level is still increasing but at a slower rate deflation (persistent decrease in the APL in an economy) is the opposite of inflation, and means that the price level is simply decreasing Reply Link to post Share on other sites More sharing options...
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