inflation and deflation

money is a measuring rod of value for goods and services which can change , sometimes quite rapidly . in June 1989 ,prices were rising at 8.3% a year , so that they would double every eight or nine years . but in Argentina ,prices were doubling every month ,with disastrous results . by October 2001 UK prices were rising at only 1.6% ayear , so that they would double only every 21 years .and in Argentina , prices were falling at about one per cent a year . inflation in a country causes people to move away from that country is money ,wherever possible ,and in to assets such as houses ,gold ,stocks and shares and foreign currency .inflation benefits borrowers , because they pay back their loans with money which buys a great deal less ( is worth alot less ) than the money they borrowed . inflation hurt lenders , who receive less in purchasing power than they lent to the borrowers and hurt all who have their income or their capital ( savings ) fixed in terms of money , which buys less each month . however , money does not always fall in value , because prices do not always rise . sometimes ,deflation occurs as prices fall and the purchasing power of money ( it is value ) rises .