CAUSES OF DEFLATION by keypoint Insufficient demand. A complete fall or over reduction of the quantity of money in circulation. Lack of zeal for investment by businessmen due to fall in prices of goods and services that do not yield any profit to them. Others are Viewing: DEFLATION DEFINITION SOLUTIONS TO CURBING DEFLATION EFFECTS OF DEFLATION CAUSES OF INFLATION CAUSES OF RAPID POPULATION GROWTH RATE CAUSES OF UNEMPLOYMENT TYPES OF INFLATION