wholesale 18k gold jewelry suppliers What does it mean to shrink?

wholesale jewelry nickel free Decline, referred to as a shrinkage, deflation (Deflation): When the currency circulating in the market decreases, the people's currency income decreases, the purchase power decreases, affects the decline in prices, and causes currency tightening. Long -term currency tightening will inhibit investment and production, leading to an increase in unemployment rates.
[Expanded information]
. Inflation originally refers to the depreciation of currency depreciation caused by the actual needs of the banknotes in the circulation of the goods. The law of banknote circulation shows that the amount of banknotes cannot exceed the amount of gold and silver currency represented by the land. Once this amount exceeds this amount, the banknotes will depreciate, and the price will rise, thereby inflation. The antonym of inflation is currency tightening. No inflation or extremely low inflation is called stability price.
. DEFLATION is that when the currency circulation in the market is reduced, the people's currency income decreases, the purchase power decreases, affects the decline in prices, and leads to deflation. Long -term currency tightening will inhibit investment and production, leading to an increase in unemployment rate and economic recession.
3. How should deflation (default) define?
. According to the definition of the Nobel Prize in Economics: "Price and costs are generally declining, which is a deflation." Economists generally believe that when the consumer price index (CPI) falls for two consecutive seasons, it means that it has appeared as a deflation. Failure tightening is the continuous decline of prices such as prices, wages, interest rates, food, energy, and other prices that cannot be paused, and all of them are in the case of excessive supply.
. The basic meaning of currency tightening
The meaning of the tightness of the currency is the same as inflation, and there is no unified understanding at home and abroad. From the perspective of the controversy, it can be summarized into the following three types. The performance of the economic recession must have three basic characteristics: first, the general decline in prices; the other is the continuous decline in currency supply; the third is that the effective demand is insufficient and the economic decline is comprehensive. This view is called "three element theory". Another point of view is that currency tightening is a currency phenomenon, manifested as the continuous decline in prices and the continuous decline in currency supply, which is the so -called "dual element theory". The third point of view is that the tightening tightening is the comprehensive decline in prices, which is called "single element theory". From the introduction above, it can be seen that although there are still controversy in the definition of currency tightening, it is common to the comprehensive decline of prices.