Question:

Natural Disasters are they inflation or deflation?

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Natural Disasters are they inflation or deflation?

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  1. They are Devastation


  2. This question does not make sense.  I will answer the alternate question

    Natural disasters: are they inflationary or deflationary?

    I would say that natural disasters are in some sense deflationary.  

    I will use the example of the black plague, although it's extreme.  When the black plague happened, a lot of people died (as may or may not happen with other natural disasters).  When a lot of people die, suddenly there is a lot more capital laying around per person (less people, same amount of stuff to make things with).  

    Since there is so much more capital laying around that people don't really need, the prices of this capital goes down.  

    [the black plague was slightly different because it involved a reallocation of land, and thus increased the standard of living, which most natural disasters would not do]

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