deflationary policy


A macroeconomic policy intended for the reduction of the aggregate demand in the economy. This is resorted to when there is a significant increase in inflation necessitating an action to dampen the rate of economic activity. Deflationary policies may either be a deflationary fiscal policy or a deflationary monetary policy.

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You may want to figure out the best way to proceed if there has just been a deflationary policy put in to place.

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The deflationary policy was really interesting and I thought it was a really good policy and worked very well for us.

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Many economists believe that the great depression in the United States and Europe was caused by deflationary policy set by the Federal Reserve and members of the international gold bloc, when they allowed prices to fall by one third.

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deflationary deflationary spiral