These days you may have heard about inflation in Media. In this article, I will explain how it decreases the purchasing power of money. What is Inflation? For example, you have vacant land in your city. There is a large number of people are willing to buy your land. Then the price of the land will increase significantly. The increase in the price of goods and services is called Inflation. Example your real estate price increase because of this only. What is Deflation? If is just reverse to Inflation. If there are no one or very few buyers are willing …