#الانكماش #deflation Deflation is a general and continuous decrease in the prices of goods and services in an economy, which increases the purchasing power of money. It is the opposite of inflation, which is characterized by high prices.
### **Causes of Contraction:**
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3. **Tightening Monetary Policy**: When central banks raise interest rates or reduce cash supply, spending and investment may decrease.
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### **Negative effects:**
**Positive**: Increasing the purchasing power of consumers, especially for those with fixed income.