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→Effect on Gold, Interest rates, Stock market, and Bonds
Deflation causes declines in [[gold]] prices and interest rates, but increases in the value of long-term [[bond]]s and potentially the [[stock market]] as investors seek higher rates of return than bank deposits offer. However, rates of default on bonds can increase due to deflation as borrowers have difficult paying back the principal.
Deflation causes declines in [[gold]] prices and interest rates, but increases in the value of long-term [[bond]]s and potentially the [[stock market]] as investors seek higher rates of return than bank deposits offer. However, rates of default on bonds can increase due to deflation as borrowers have difficult paying back the principal.
== Deflation in China (July 2023 to present) ==
''See also:'' [[Deflation in China (July 2023 to present)]]
== Food deflation ==
== Food deflation ==