GO
Loading...

Deflation: CNBC Explains

If you understand inflation, deflation is simply the flip side of the coin. In fact, sometimes it referred to as “negative inflation.” Like inflation, deflation is determined in relationship to a basket of goods and services. What is deflation? How is it measured? Salman Khan of the Khan Academy explains in a simplified example.

From this video, you’ll understand:

  • How to understand deflation over time
  • Why policymakers strive to avoid deflation

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • Tips on the best-performing portfolio strategies and global market trends that can help you become a smarter investor.

  • The nexus of technology -- cloud, social, mobile and data -- are transforming user behaviors and creating new businesses.

  • Advisor-centric content with guest columns covering practice management, investment strategies and marketing/social media.