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.”