deflation

Definition

A decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the economy. opposite of inflation.

Use deflation in a sentence

You should try and figure out a way to be prepared for any deflation and make the correct adjustments on time.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

My boss advised me to invest in gold because he believed that gold was an investment that was resistant to deflation and would not decline in value.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

In the last recession, many prices appeared to be falling because of inadequate demand, so central banks decided to do everything they could to avoid deflation.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
price stability disinflation