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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

will NOT cause inflationcausedeflation even

so worried about inflationcauseddeflation right

by money(passive) caused bydeflation ... & quot;increased demand&quot

flawed central banking policiescausingcatastrophic deflation

debt deleveraging(passive) caused bymonetary deflation

by a decreased supply of money or credit , or lower government , personal or investment spending(passive) is ... caused byDeflation

by a large decrease in demand or the velocity of money(passive) is caused bydeflation

by a negative demand shock ( i.e. bad deflation ) and deflation caused by a positive supply shock ( i.e. good(passive) caused bydeflation

a negative demand shock ( i.e. bad deflation ) and deflation caused by a positive supply shock ( i.e. good deflation(passive) caused bydeflation

a decrease in the supply of money or credit(passive) can be caused byDeflation

when prices are falling more than proportionately to the output of goods and services in the economy as a result of decrease in the money supply(passive) is causedDeflation

A reduction in the supply of money or creditcausesdeflation

the supply of money in the circulation ... to decreasecausingdeflation

by an excess demand for money(passive) caused bydeflation

Increase of money as you know causes inflation and decreaseusually causesdeflation

prices ( denominated in gold ) will fallcausingdeflation

Fierce competition in the Chinese domestic marketcausedprotracted deflation

by low money growth(passive) caused bydeflation

prices ( denominated in gold ) will dropcausingdeflation

a decrease in government , personal or investment spending(passive) can be caused also byDeflation

a decrease in government , personal or investment spending(passive) can also be caused byDeflation

a decrease in government , personal or investment spending(passive) can be caused byDeflation

A decrease in Government , personal or investment spendingcan also causedeflation

decrease In government , personal or investment spending(passive) can be caused also byDeflation

a decrease in government , personal or investment spending(passive) can also be caused by Deflation

a decrease in government , personal or investment spending(passive) could be caused also byDeflation

a decrease in government , personal or investment spending (passive) can be caused also byDeflation

a decrease in government , personal or investment spending(passive) can be also caused byDeflation

lower dollar prices of imported goods(passive) caused bydeflation

the contraction of debt and the money supply(passive) is caused byDeflation

reduced demand and consumption in the economy(passive) is generally caused byDeflation

Weak international demand for Japanese goods and a strengthening yenprompteddeflation

by a collapse in China real - estate prices(passive) caused bydeflation

the increase in gold demand(passive) caused bydeflation

prices cost in gold will sharpcausingdeflation

A reduction in the supply of moneycausesdeflation

artificially stimulated overproduction and tight credit(passive) caused bySees deflation

a decline in government , personal , or investment spending(passive) can be caused byDeflation

by intentional contraction of the money supply ( like inflation(passive) caused byDeflation

the lack of money supplies for the real economy(passive) caused bydeflation

to a depressionto leadto a depression

to employmentleadsto employment

lower spending and lower growthto causelower spending and lower growth

in an increase in the purchasing power of a currencyto resultin an increase in the purchasing power of a currency

to hoarding of cash - peopleleadsto hoarding of cash - people

confusion in the currency marketscausedconfusion in the currency markets

debt inflationcausesdebt inflation

a major problemcauseda major problem

a decline in demandcausesa decline in demand

a domino effect : stress on borrowers who have to pay back more in real terms than the nominal value they borrowed ; which leads to stress in the financial system , as loans are not being repaid on time ; which leads to tighter lending standards and bank failures ; which leads to declines in asset values , a decline in overall demand ( or collapse , if deflation is especially severe , as it was in Great Depression , along with widespread bank failures ) , rising unemployment , and underinvestment that imposes costs on future economic activity and outputcan causea domino effect : stress on borrowers who have to pay back more in real terms than the nominal value they borrowed ; which leads to stress in the financial system , as loans are not being repaid on time ; which leads to tighter lending standards and bank failures ; which leads to declines in asset values , a decline in overall demand ( or collapse , if deflation is especially severe , as it was in Great Depression , along with widespread bank failures ) , rising unemployment , and underinvestment that imposes costs on future economic activity and output

inflationcausesinflation

a spiral where , as prices fall , people delay purchases , leading to falling demand , a drop in output and falling wagescan seta spiral where , as prices fall , people delay purchases , leading to falling demand , a drop in output and falling wages

more - liquid assetscausesmore - liquid assets

real interest rates(passive) caused byreal interest rates

to a rise in interest rates resulting in a decrease in national output and hence national income and a rise in unemploymentmay leadto a rise in interest rates resulting in a decrease in national output and hence national income and a rise in unemployment

to widespread bankruptcy resulting in a decrease in national output and hence national income and a rise in unemploymentmay leadto widespread bankruptcy resulting in a decrease in national output and hence national income and a rise in unemployment

to deflationary expectations resulting in a decrease in national output and hence national income and a rise in unemploymentmay leadto deflationary expectations resulting in a decrease in national output and hence national income and a rise in unemployment

households to hold off purchases in anticipation of even lower pricesleadshouseholds to hold off purchases in anticipation of even lower prices

a rise in unemployment and decline in outputcausesa rise in unemployment and decline in output

inflationcausinginflation

to rising unemployment and falling capacity utilization , which puts more downward pressure on prices and wages , which accelerates deflation , which makes the economy even more depressedleadsto rising unemployment and falling capacity utilization , which puts more downward pressure on prices and wages , which accelerates deflation , which makes the economy even more depressed

that debt to rise in real termswould causethat debt to rise in real terms

debt defaults , which in turn cause bank failures , which in turn result in inflation when the government bails out depositorscausesdebt defaults , which in turn cause bank failures , which in turn result in inflation when the government bails out depositors

the real ( and nominal ) monetary base to rise sharply , as people and banks hoard base moneycan also causethe real ( and nominal ) monetary base to rise sharply , as people and banks hoard base money

from bad monetary policyresultingfrom bad monetary policy

people to hoard their moneycausingpeople to hoard their money

prices to fall and the value of the currency to risecausesprices to fall and the value of the currency to rise

people to hoard their money instead of spending it , making the problems worsecausedpeople to hoard their money instead of spending it , making the problems worse

to a negative cycle where consumers delay purchases in anticipation of lower pricescan leadto a negative cycle where consumers delay purchases in anticipation of lower prices

to a price collapse in commodities and assetsleadingto a price collapse in commodities and assets

to economic stagnation and eventually recessionleadsto economic stagnation and eventually recession

real wages to grow faster and for employment to suffer a faster decrease in growthwill just causereal wages to grow faster and for employment to suffer a faster decrease in growth

the nominal prices of capital , labor , goods , and companies to fallcausesthe nominal prices of capital , labor , goods , and companies to fall

our currency to rise in valuewould causeour currency to rise in value

a widespread decline in prices andcausesa widespread decline in prices and

the value of our currency to increasecausesthe value of our currency to increase

a widespread decline in pricescausesa widespread decline in prices

prices of goods to fall , which increased the buying power of workerscausedprices of goods to fall , which increased the buying power of workers

to a large reduction of price levels in uncontrolled markets , and to an appreciable decline of inflation as measured by the GDP deflator ( see Tables 1 and 2also ledto a large reduction of price levels in uncontrolled markets , and to an appreciable decline of inflation as measured by the GDP deflator ( see Tables 1 and 2

to economic stagnation in Japanledto economic stagnation in Japan

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Smart Reasoning:

C&E

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