deflation
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- How to read in Japanese: deflation
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- antonym
The phenomenon in which the value of money increases and the value of goods decreases is called deflation. It is the opposite phenomenon of inflation, in which the value of goods increases.
Deflation is said to occur when there is less money available in the world. When there is less money available in the world, people will stop spending money.
Retailers and other retailers lower the price of goods to sell them because they have to sell goods to stay in business. Since the price of goods is lowered in order to get money, the value of goods is considered to have decreased.
In the case of virtual currencies, the amount of money circulating is not controlled. Therefore, deflation and inflation do not occur, and the value of the currency or goods does not fluctuate depending on the supply.