GLOBALIZATION AND DEFLATION

Globalization has become a real phenomenon that affects the situation of absolutely all economies. In the last few years, the developed countries met with the deflation. Its impacts are still viewed negatively by economists. Standard tools of the fight against the deflation are ineffective, it would be appropriate to consider the causes of its formation. One possible explanation for its existence is precisely the deepening of the globalization and thereby an increased pressure on efficiency and a decrease in production costs. The paper briefly describes the basic definitions as globalization, deflation and discusses the possible relationship between these categories.