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.

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Related Terms

disinflation, depression, reflation

'deflation ' appears in the definitions of these other terms on BusinessDictionary.com



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