deflation

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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 ?
In the case of survey question on inflation expectations, the benchmark value is a measure of perceived inflation that treats observed negative inflation rates as temporary, not affecting inflation perception of respondents.
Negative inflation is expected to persist through the first half of 2010 due to excess production capacity and the ongoing adjustment in the labour market.
The investment bank forecast Qatar would have negative inflation of an estimated 4.
13) Consistent with Gavin and Mandel, negative inflation errors and positive output errors were uncovered for most of the sample.
But it would probably help the marketplace understand a little better about what the Fed's intentions are and also provide some assurance that we are prepared to guard against zero or negative inflation.
As the Japanese economy recovers, and the yen appreciates, Tokyo's comparative cost of living index has risen by 26% and made it more than 30% dearer than Hong Kong, which remains in third position despite negative inflation.
This positive effect amounts to negative inflation from the viewpoint of high-income consumers.
Margin contraction resulted principally from negative inflation, given that a significant part of the banks' asset base is denominated in inflation-linked Unidad de Fomento (UF), a higher level of liquid assets in the balance sheet mix, and significant dollar devaluation.
The exchange rate remains higher than is sustainable for balanced economic growth and, together with low global inflation, continues to generate negative inflation in the tradables sector.
The injection of fresh capital into the cooperative banks over the 2014-2015 period, marginally less than one-tenth of GDP, combined with a weakened economy over the past years and negative inflation, allowed public debt to peak at 108.
That is, if they expect negative inflation rates to be lower than the negative bond yields, then buying these bonds would be viewed as a worthwhile investment.
The negative inflation projection is driven by further declines in international oil prices and lower international prices of non-energy commodities combined with sluggish demand.