Danubius International Conferences, International Conference on Contemporary Scientific and Technological Aspects towards an Entrepreneurial Approach

The Importance of Price Stability

Gina Ioan
Last modified: 2022-02-24


In this article it is analyzed  the phenomena of inflation and deflation from the perspective of macroeconomic financial stability Inflation and deflation are major economic imbalances that  have adverse consequences for economies. Inflation is a monetary phenomenon reflected in the persistent, cumulative and widespread rise in prices in the economy. Deflation is an opposite phenomenon to inflation and is characterized by falling prices for goods and services with consequences as severe as inflation. In the long run, changes in the money supply will affect the general level of prices. In a macroeconomic climate without inflation and deflation, there is price stability with favorable effects on economic growth and development.