Answers

A deflationary environment can be devastating for anyone unprepared but a prosperous time for those who are able to sidestep it. The first step to preparing is to gain an understanding of what deflation is and what it is not. There are many misconceptions on the causes and effects of deflation. The following articles answer some of the most common questions about deflation. We hope they help you take the first step towards understanding and preparing for deflation.

What’s the Definition of Deflation?
Many investors think that “falling prices” is the definition of deflation. This is not accurate. Learn the definition of deflation.

What are the Causes of Deflation?
Learn the two main causes of deflation and an example of how deflation played out in Japan in the 1990s.

What is the Difference Between Inflation and Deflation?
Learn what the difference is between inflation and deflation.

Why Can’t Central Banks Prevent Deflation?
Learn why Central Banks can’t prevent deflation.

What is a Deflationary Spiral?
Learn what drives a deflationary spiral, including an example of what happened during the Great Depression.

What is the Key to Survival During a Deflationary Depression?
Learn what you can do to survive and thrive in a during a Deflationary Depression.

Other FAQs
Short, quick-fire answers to some of the most common questions about deflation.