deflation

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Related to deflations: Deflationary spiral, Negative Inflation

deflation:

see inflationinflation,
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.
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.

deflation

(ECONOMICS) a decrease over time in the general level of prices, coupled with an overall reduction in the level of economic activity, new investment, etc. (compare INFLATION). In modern capitalist economies, in which inflation tends to be endemic, deflation is usually relative rather than absolute, involving a reduction in rates of price increase rather than an absolute decrease in prices.

Deflation

 

the decrease of monetary volume by means of the withdrawal from circulation of excess paper money. Deflation often precedes monetary reforms. Since World War II deflation has most often been encountered as part of the so-called deflation policy of capitalist states, which aims at stopping or decreasing the rates of growth of monetary volume and commodity prices. Deflation is realized through limitation of credits (an increase in the rate of interest, imposition of credit limits), higher taxes, reduction of expenditures for social and cultural needs, a “freeze” on wages and salaries, and other measures carried out by capitalist states. These measures result in a lowering of the rate of economic development, a deterioration in the living conditions of the toiling masses, and an intensification of the class struggle.


Deflation

 

the disintegration of rocks and soils owing to wind action, accompanied by the removal and wearing away of the broken particles. Deflation is particularly strong in those parts of deserts from which dominant winds blow (for example, in the southern part of the Karakumy desert). The processes of deflation and physical weathering result in the formation of eroded cliffs with unusual shapes, such as towers, columns, and obelisks.

deflation

[di′flā·shən]
(geology)
The sweeping erosive action of the wind over the ground.

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
References in periodicals archive ?
Although sometimes confused with deflation, disinflation is not considered to be as problematic because prices do not actually drop.
Deflation, the opposite of inflation, is defined as an increase in the over-all price level over a period of time.
Three possible outcomes exist: deflation where prices fall and the real cost of borrowing goes up; reflation where prices stabilise and interest rates return to normal levels; and inflation where prices rise quickly and cause economic disruption, as central banks are forced to raise interest rates aggressively.
If G7 central banks fail to deliver a revival, bonds denominated in local currencies in emerging markets will also become good value as recession and deflation will take on more global characteristics.
Deflation that emanates from the financial sector is lethal.
There is a further reason why deflation is such a threat, and why policymakers setting out to eliminate it have a much tougher task than inflation fighters: all prices do not move down; in particular debts do not adjust because they are fixed in nominal terms.
Deflation is generally considered to be inconsistent with macroeconomic stability.
Taking seriously the idea that deflation can be benign, however, is a tough sell in a world where inflation is considered standard and deflation is generally assumed to be harmful.
0% (annualized) is not deflation because it represents a short-term fall in energy prices.
Households do not seem excessively worried that deflation will emerge in the next year; they said they expected prices to rise 2.
Deflations make central bankers nervous, and history tells us why.
Rising Japanese inflation is a direct consequence of expansionary economic policies introduced this year, which could help the country escape from the lost decades of low growth and deflation from the real estate crash of 1989 until today.