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Roger Arnold on inflation, stagflation, deflation and disinflation:

Inflation - "Rising interest rates and cost of goods coupled with increasing economic activity; Costs go up and people spend more."

Stagflation - "Rising interest rates and cost of goods coupled with decreasing economic activity. Costs go up but people spend less."

Deflation - "Falling interest rates and cost of goods coupled with decreasing economic activity; Costs go down but people spend less."

Dis-Inflation - "A slow down in the rate of inflation but still in positive territory."

Posted: 2003-01-28 11:18:50


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