## When Money Contracts, Investors Need to Know Why They Invest
During times when the prices of goods and services gradually decline, the economic signals are warning us that we may be entering a period of deflation or monetary contraction. The problem is that most investors still don't know what to do. Let's clarify this issue and learn how to apply it practically.
## What is Deflation? How is it Different from Inflation?
When we talk about deflation or monetary contraction, it refers to a situation where the overall price level continuously decreases. This phenomenon is the opposite of infla
View OriginalDuring times when the prices of goods and services gradually decline, the economic signals are warning us that we may be entering a period of deflation or monetary contraction. The problem is that most investors still don't know what to do. Let's clarify this issue and learn how to apply it practically.
## What is Deflation? How is it Different from Inflation?
When we talk about deflation or monetary contraction, it refers to a situation where the overall price level continuously decreases. This phenomenon is the opposite of infla