Financial Glossary

Deflation

What is Deflation? In economics, deflation is a sustained decrease in the prices of goods and services and a contraction in the supply of circulated money within an economy. It is the opposite of inflation – in fact, deflation only…

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Money Supply

What is Money Supply? The ‘money supply’ is the total amount of monetary assets available, like currency in circulation and demand deposits convertible into cash, in an economy at a specific time. This definition may vary, as sometimes it is…

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Liquidity

What is liquidity? In economics, liquidity refers to the amount of cash, cash equivalents or other assets that can be converted into cash without difficulty. Money, or cash, is the most liquid asset out there. It can be easily exchanged…

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