Deflation: a fall in the general price level often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending.

Disinflation: a decrease in the rate of inflation.

Hyperinflation: an out-of-control inflationary spiral.

Stagflation a combination of high rate inflation, slow economic growth and high unemployment co-exist in the economy. During such a period, there exists excess capacity in industries whereby factors of production are either idle or not fully utilized.

Stagflation affects mostly consumers as goods and services become expensive and unemployment robs them of income. To add to their misery procuring loans maybe difficult as the Central Bank may restrict credit to combat stagflation. Once stagflation occurs it is difficult to deal with. The measures a government would usually take to revive an economy in recession (cutting interest rates or increasing government spending) will also increase inflation:

Under normal recessionary conditions inflationary policies are acceptable, but given already high inflation, pushing inflation still higher is itself damaging.

Rates of Inflation: Rates of inflation refer to the speed at which prices rise during inflation, It is .thus the degree or intensity of the price changes.

Reflation: an attempt to raise the general level of prices to counteract deflationary pressures,

Depression: a severe and prolonged recession characterized by inefficient economic productivity, high unemployment and falling price