Business, Legal & Accounting Glossary
Zero inflation is the state an economy reaches when price stability is reached. Prices are neither rising (inflation) or falling (deflation).
In principle, most central banks are aiming to reach a state of zero inflation, but in reality, no economy reaches this state or any length of time (except perhaps the most closed economy that fixes prices and does not print any new money).
Some commenters will refer to a period of zero inflation, when in fact the economy is experiencing very low states of inflation or deflation.
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This glossary post was last updated: 2nd April, 2020 | 0 Views.