deflation

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Related to deflationary: deflationary gap, Deflationary spiral

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 ?
All of which is deflationary today and should continue to be for many years.
Under normal circumstances, growth should return to the quantitative easing countries at the expense of the non-quantitative easing countries, and deflationary pressures should be transmitted from the former to the latter if the nominal exchange rates of the latter do not adjust.
In October, the US Treasury Department published a report, which concluded that the net result of Germany's over-reliance on exports "has been a deflationary bias for the euro area, as well as for the world economy".
"It will not be easy to dispel deflationary expectations that are rooted in the public," Kodama said.
"We've got a government now that is deflationary in terms of its economic politics and is also axing the welfare bill simultaneously.
If the economic outlook and deflationary risks so require, the SNB will take further measures.
"Deflation should now begin to bottom out, given that we are seeing two consecutive months of no deflationary trends," said John Sfakianakis, chief economist at Banque Saudi Fransi.
Because of the tremendous, unprecedented build-up in credit, the deflationary outlook is grim.
The second (already mentioned above) is deflationary, namely raise taxes and/or cut spending.
They suggest that the inability to lower interest rates could allow a sudden and unexpected fall in the demand for goods and services to push the economy into a deflationary spiral, a situation in which falling prices and falling output feed upon each other.
SWINE flu could tip the UK economy into a deflationary spin and see Gross Domestic Product plummet 5% as consumers stay at home to avoid infection, a report warned today.
Fears that the recession could drive Britain into a deflationary spiral, where companies and individuals put off purchasing decisions expecting to be able to buy cheaper later, have been fading decisively this spring.