Although both are economic problems that could affect the economic development of a country, there are some important differences:
• Inflation occurs when the price of services and good suffer a tremendous increase, reducing the power of the money, and therefore the people’s purchasing power. Some examples include Argentina during the early 2000s or the current situation of Venezuela.
• Depression is an economic recession that lasts several years, causing an irreparable damage to the economy. Some consequences of depression are the high rates of unemployment and the devaluation of local stocks, as well as local currencies.
Such as the Great Depression during the 30s or the recent one of 2008