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Economic Definition of speculation. Defined. Term speculation Definition: Buying an asset with the intent of reselling it later at a higher price. The purpose of speculation is simply to buy low today and sell high tomorrow. Those who engage in speculation have no reason for buying the asset, other than resale at a later time.
Inflation is a force to be reckoned with, too. But it's deflation that really makes economists shudder. What You Can Do As regular readers know, I'm not a big fan of going overboard in anticipation of one specific economic scenario or another.