In an inflationary environment, prices rise, purchasing power decreases, and currency value falls. In a deflationary environment, prices fall, purchasing power increases, and currency value rises.

Authors

• Person: Not available Organization: LibreTexts
  1.3: Systemic or "Macro" Factors That Affect Financial Thinking

Sources

• 1.3: Systemic or "Macro" Factors That Affect Financial Thinking biz.libretexts.org LibreTexts via serper

Referenced by nodes (3)

• purchasing power concept
• currency value concept
• prices concept