Debt deflation occurs when the value of an asset used as collateral for a loan decreases, leading lenders to adjust loan terms. This can put lenders at high risk if the property’s value falls below the remaining mortgage balance. Regulations govern lenders’ actions in such situations. Also known as collateral deflation or worse deflation, debt […]
Embezzlement involves mismanagement or misuse of funds, including stealing company funds or using them for personal use. Fiduciary malpractice and real estate defalcation are other forms of misappropriation. Punishment for embezzlement varies by country. Embezzlement is a term that has to do with the mismanagement or misappropriation of funds. This mishandling can involve customer payments, […]
Deflation is a decrease in price levels, which can be dangerous for the economy. It can occur due to a higher demand for money, a higher supply of goods, a lower supply of money, or a lower demand for goods. The national bank can combat deflation by increasing the money supply through interest rates. However, […]
Debt deflation occurs when the value of an asset used as collateral for a loan decreases, causing lenders to adjust loan terms. Even assets believed to increase in value can fall victim to debt deflation. Regulations govern lender actions, and borrowers should understand what lenders can and cannot do in such situations. Also known as […]
Negative inflation is when an economy comes out of an inflationary period and enters a period with less money in circulation, causing prices to remain constant. It helps to slow and reverse inflation, but may lead to deflation if the money supply doesn’t increase. Negative inflation and deflation are often confused, but negative inflation is […]
