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 ?
Economic theory predicts that if wages are sticky in one sector, like manufacturing, and flexible in the rest of the economy, a price deflation will cause employment to drop in the inflexible sector and rise in the flexible one.
In turn, this price deflation should create significant cost saving opportunities all along the packaged food supply chain.
The company's internal food price index for the most recent quarter declined and was relatively flat compared to the average quarterly national food price deflation of 3.
The price deflation in the BRCNielsen Shop Price Index shows overall annual deflation for nonfood items dropped to two per cent compared with 2.
There has been price deflation on food of about 8%," added O'Riordan.
Dean Mirfin, Key Retirement Solutions group director, said: "The past year proved tough for all financial service sectors, however the results for the equity release market show that demand is still strong despite a year of house price deflation and understandably issues of confidence amongst consumers.
RICS Northern Ireland housing spokesman Tom McClelland said: "While the balance of chartered surveyors reporting price deflation in the rest of the UK has taken a turn for the worse the survey reports that price falls in Northern Ireland, although still significant, have been easing back.
There was a 7pc fall in like-for-like sales at PC World, because of continued price deflation in the computer hardware market.
NEW YORK-Although unit sales of DVD players are expected to grow this year by more than 7 percent, price deflation will cause retailers to experience a decline in sales dollars by more than 6 percent.
As a benefit for consumers, the study sees modest price deflation as a result of better international trade and increased productivity.
Kuroda and Kawai also proposed a ''concerted global reflation'' policy to be taken by central banks in the United States, Europe and Japan to minimize the risk of a delay in economic recovery and price deflation globally.