Deflácia

Deflácia is a sustained decrease in the general price level of goods and services in an economy over a period of time. This means that the purchasing power of money increases, and consumers can buy more with the same amount of money. Deflation is the opposite of inflation, which is a general increase in prices.

There are several causes of deflation. One common cause is a decrease in aggregate demand, which can occur due to factors such as a decline in consumer spending, reduced investment, or a contraction in government spending. Another cause can be an increase in aggregate supply, perhaps due to technological advancements or increased productivity, which leads to lower production costs and thus lower prices. A significant increase in the money supply can also lead to deflation if the growth of the money supply is outpaced by the growth of the economy's output.

Deflation can have several economic consequences. On the one hand, it can be beneficial for consumers as their money buys more. Businesses may also benefit from lower input costs. However, prolonged deflation can be detrimental. Consumers might postpone purchases, expecting prices to fall further, leading to decreased demand and economic stagnation. Businesses may face declining revenues and profits, potentially leading to job losses and reduced investment. Debtors also become worse off as the real value of their debts increases, making them harder to repay. Central banks often view deflation as a serious threat and may implement policies to combat it, such as lowering interest rates or increasing the money supply.