Street Smart: Do You Know What Deflation Is? [Video]



Pretty much everyone hates inflation, and there's little wonder why. Nobody likes paying higher prices for goods and services (even as inflation actually reduces the burden of debt). Deflation, on the other hand, has instant emotional appeal. After all, who doesn't like a bargain? But deflation is a far more serious economic problem than inflation -- and most folks don't really know why. Gary Shilling, president of economic consulting firm A. Gary Shilling & Co. and author of the just-published The Age of Deleveraging, explains why falling prices are indeed scarier than rising prices.
Read Full Story

Markets

DJIA 21,580.07 -31.71 -0.15%
NASDAQ 6,387.75 -2.25 -0.04%
S&P 500 2,472.54 -0.91 -0.04%
NIKKEI 225 19,975.67 -124.08 -0.62%
HANG SENG 26,846.83 140.74 0.53%
DAX 12,208.52 -31.54 -0.26%
USD (per EUR) 1.17 0.00 -0.27%
USD (per CHF) 0.95 0.00 0.15%
JPY (per USD) 110.77 -0.17 -0.15%
GBP (per USD) 1.30 0.00 0.13%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.