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When it comes to the reasons of deflation most of the economists see it as a monetary phenomenon which is affected by demand and supply. If the supply of money is more than demand then the value of money increases and prices go up as a consequence. When the supply of the products are higher than demand it results with the mass production which leads to the fall of prices. Some people believe that the deflation occurs because of the mass production and falling the aggregate level of demand. The biggest effect of deflation is unemployement. Deefletion is more serious and dfficult than inflation. To prevent deflation first is give an upward push to the aggreagte demand by increasing government spending or the second they can increase the money supply by decreasing cash reverse ratio.

When it comes to the deflation some of the economists believe that it is a monetary phenomenon which is affected by supply and demand. The reasons that leads to deflation are if supply of money is less than its demand than the value of money increases and the prices would go up. If the supply of the product is more tha its demand then it will lead to the mass production which the large amount of products will lead the prices to fall immidietly. The biggest effect of deflation is unempoyment. Deflation is more diffucult and serious than inflation. To prevent deflation first give an upward push to the aggregate demand by increasing government spending or the secong they can increase the money supply by decreasing cash reserve ratio.

In UK shop prices rose at the fastest pace since December as the cost of non-food products increased for the first time for a year. In overall shop price inflation increased 1.4% from 1.1% in March. Food price inflation remained high 3.5 %. It is caused more pressure on cash-strapped consumers.Prices rose across health and beauty products mostly. The rate of year-on-year price deflation in shoes, footwear and electrical goods slowed to 2.2% from 4.2% in February.Total inflation is at its highest rate which is reflecting that many retailers went into the new year with less stock to clear so discounting is less extensive compared with 2012.

This article is interesting because it shows economics and how it must adapt as well in order to better handle things that arise with the new century. It illustrates how economics as a study is not static

The article is talking about the programmers around the world have been churning out new digital currencies that try to improve on the concept of bitcoin, the hot but controversial virtual money that has swept the InternetAs questions still swirl around bitcoin's legality, many technology entrepreneurs are trying to sidestep the currency's pitfalls by devising new ways to make payments in a cashless futureThe online payment system viewed by many insiders as having the best chance of supplanting bitcoin, however, is not even on the list: Ripple. Founded in San Francisco by former bitcoin developers, Ripple holds out the promise not just of a new currency, but also of a novel method to send money around the world. With that potential, it is winning something that has proved elusive for virtual currencies: involvement from more mainstream players in the financial system.