What causes deflation?

1. Money Supply

One of the main causes of deflation is a fall in money supply but more specifically, a decline in the circulation of money would lead to less money going around.

2. Debt

After a credit bubble like the one experienced in the United States in 2008, has led to people seeking to pay off debts. This led to a decline in the circulation of money.

3. Lending

Borrowed money is generally spent in an economy, which increases the circulation of money. So when credit tightens and loans are harder to qualify for, this can negatively affect the circulation of money.

Explanation:

well the fact it is basically a peninsula allowed trade to come from many places, thus allowing cultural diffusion to take place. india has seasonal monsoons that merchants travel back and forth from india using the monsoons wind patterns

the results of roman expansion produced social conflict and civil war. julius caesar gained power and became a dictator but was then assassinated. the reign of augustus began a long period of imperial rule and peace in the roman empire. rome faced the problems of how to maintain peace, law, and order.

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