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VFM What causes Deflation Shortionary

What causes Deflation?

5 things may cause deflation:

1.- People withdraw money from banks and take it to the Caribbean or to Germany.

2.- People withdraw money from banks and keep it at home.

3.- The economy goes wrong or banks are broke and they give less credit.

4.- People ask for credit at a smaller rate they are paying their debts.

5.- People stop paying their debts, thus banks go broke and do not give credit.


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¿Qué causa la Deflación?

5 cosas pueden causar deflación:

1.- La gente saca el dinero del banco y se lo lleva al Caribe o a Alemania.

2.- La gente saca el dinero del banco y lo guarda en su casa.

3.- La economía va mal o los bancos están quebrados y conceden menos créditos.

4.- La gente pide préstamos a un ritmo menor del que se pagan las deudas.

5.- La gente deja de pagar sus deudas, los bancos quiebran y dejan de dar créditos.


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