Deflation

According to the law of the circulation of paper money, when the quantity of paper money or all kinds of credit money issued is lower than the quantity of the metallic money required in circulation, the value or symbol of social labor represented by it becomes greater, and the phenomenon of appreciation of paper money and general fall in the commodity prices takes place, i.e., deflation will emerge. According to Marx, deflation or inflation are both caused by the economic industrial cycle, and actually reflect the relation between the circulation of metallic money and the symbols of value that replace it.