The Recession that never was! Are you prepared for Economic Depression in the 21st Century?
We have been through economic phases of sky-rocketing inflation many times, but it's rare to find any living person who has been through the Great Depression of 1930's. Current inflation can have serious implications on our spending habits as purchasing power is hard hit amid rising costs. You might think that depression on the other hand would be a good thing to experience as prices fall at a fast pace. But that's not how it is.
Deflation, as the term suggests is a fall in demand followed by sharp declines in prices, and not to forget that money supply can remain largely restricted in such scenario. Often we consider only one factor to be associated with deflation i.e. decreased demand, but what follows is even worse.
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