Deflation Versus Inflation [CHARTS]

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Deflation vs. Inflation by Shane Obata and Triggers, Tha Business

Some people are expecting deflation…

…Others are expecting inflation.

So who’s right?

Not Steve Liesman All of them.

Deflation

Investopedia defines deflation as “a general decline in prices, often caused by a reduction in the supply of money or credit.”

While that’s not occurring everywhere, it is taking place in parts of the world.

Credit growth in Europe

The global economy is dependent on credit; if it doesn’t grow then neither will economic output.

Chart 1 shows that, in Europe, loans to...

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