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Old 11-02-2010, 05:49 PM  
wig
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Join Date: Feb 2002
Location: Panama
Posts: 708
Deflation = a fall in the general price level and/or a contraction of credit and available money.

Prices of many asset classes collapsed (stocks, commodities, real estate).

Credit and available money contracted.

Government intervention, right, wrong or indifferent, followed.

Whether the risk of further deflation has been thwarted remains to be seen, as does the prospects for hyperinflation.
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