Deflation

As Americans struggle through what we hope is the tail end of the “Great Recession”, we hear the terms “inflation” and “deflation” often.  For many people, these terms mean little beyond the definitions of “a rise in general prices” and “a fall in general prices”, respectively.  In many ways however, inflation and deflation are two of the biggest drivers for your investment decisions. How, then, does inflation and deflation really affect our families and finances?

Inflation