A deflationary gap, also known as a recessionary gap or negative output gap, occurs when an economy's actual output is below its potential output, indicating that there is insufficient aggregate demand to fully utilize all available resources and achieve full employment. This situation leads to lower prices and potentially higher unemployment.

Macroeconomics Cheat Sheet: https://t.co/pt0Bx4i7bZ

Every hyperinflation looked the same. “Hyperinflations are always caused by public budget deficits which are largely financed by money creation.” But even more interestingly, Bernholz identified the level at which hyperinflations can start. He concluded that “the figures demonstrate clearly that deficits amounting to 40 percent or more of

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