verðfalli
Verðfall is an Icelandic economic term describing a fall in prices. It can refer to a general decline in the overall price level, i.e., deflation, or to a drop in the price of a specific good or service. The concept is the opposite of verðbólga, which denotes inflation or rising prices. In economic discussion, verðfall is often used to describe sustained decreases in price levels rather than isolated price drops.
Causes of verðfall include weak aggregate demand, excess productive capacity, or external factors such as a
The effects of verðfall are nuanced. While lower prices can increase the purchasing power of consumers in
Measurement of price changes typically uses consumer price indices (CPI) and other inflation gauges compiled by
Notes: verðfalli is a grammatical form of verðfall in Icelandic and appears in sentences where the word