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Electronics/Deflation factors.

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Question
Dear ZZ

Can you list the factors contributing to deflation in a growing economic nation?.

Thanks & Regards,
Prashant S Akerkar

Answer
This question is far away from the field of electronics!  Perhaps you should be referred to other experts in the field of economics.

But, in spite of the question being unrelated I'll give you some links to study on the subject - which requires more than just a simple answer, by the way:

https://en.wikipedia.org/wiki/Deflation

http://www.moneycrashers.com/deflation-definition-causes-effects/

http://www.economicsonline.co.uk/Managing_the_economy/Inflation_and_deflation.ht

In sum, deflation and the more common effect, inflation, are dependent on supply and demand issues in the national economy. When demand for production/goods is high it leads to price increases; when demand is low it leads to lower prices that producers can expect thus creating a deflation effect.  On a short term bases they are self corrective in an open market society but in closed societies and in long term situations the effects of deflation can be very damaging to the economic viability of the national productive capacities.

Good Luck.  

Electronics

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ZZ

Expertise

Electronics questions about AC, DC and digital theory.

Experience

Graduate electrical engineer with over 40 years in electronic design, manufacturing, project organization and patent review. Experience in fields of industrial and consumer electronics (audio, video, acoustics, etc.)

Organizations
IEEE (Institute of Electrical and Electronics Engineers); Senior Life member AES (Audio Engineering Society), Fellow Life member

Education/Credentials
BSEE University of North Dakota

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