In the article it is noted that Mr. Bernanke discusses how inflation is too low at 1% and that risk of deflation is higher than desirable. Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Deflation is the decline in the price level of goods and services. Deflation occurs when the annual inflation rate falls below 0%. If price levels rise, currency buys fewer goods and services. So inflation's effects on an economy can have both a positive and negative impact. He... [continues]
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