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deflation |
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deflation: see inflation inflation, in economics, persistent and relatively large increase in the general price level of goods and services. Its opposite is deflation, a process of generally declining prices. The U.S. ..... Click the link for more information. . deflationContraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. Attempts are sometimes made to bring on deflation (through raising interest rates and tightening the money supply) in order to combat inflation and slow the economy. Deflation is characteristic of depressions and recessions. deflation 1. Economics a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices 2. Geology the removal of loose rock material, sand, and dust by the wind deflation [di′flā·shən] (geology) The sweeping erosive action of the wind over the ground. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| This will be followed by a period of price deflation. Five years of consumer price deflation have done little to make Japan more affordable. Even if the renminbi were to re-value higher tomorrow, the risk of global deflation is still on the high side due to Japan's persistent deflationary malaise, global asset price deflation following the collapse of the Internet bubble, and shorter product life cycles as a result of ongoing improvements in productivity. |
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