What does deflation mean?
Definitions for deflation
dɪˈfleɪ ʃənde·fla·tion
This dictionary definitions page includes all the possible meanings, example usage and translations of the word deflation.
Princeton's WordNet
deflationnoun
(geology) the erosion of soil as a consequence of sand and dust and loose rocks being removed by the wind
"a constant deflation of the desert landscape"
deflationnoun
a contraction of economic activity resulting in a decline of prices
deflationnoun
the act of letting the air out of something
GCIDE
deflationnoun
the act or process of deflating.
deflationnoun
a fall in the average prices of goods and services; -- usually associated with contraction of economic activity. Opposite of inflation. Compare disinflation.
deflationnoun
(Geol.) the erosion of land structures such as sand or soil due to the action of wind. RHUD
Wiktionary
deflationnoun
An act or instance of deflating.
The loss cause utter deflation and disappointment among the fans.
deflationnoun
A decrease in the general price level, that is, in the nominal cost of goods and services as well as wages.
deflationnoun
An economic contraction.
Wikipedia
Deflation
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the value of currency over time, but sudden deflation increases it. This allows more goods and services to be bought than before with the same amount of currency. Deflation is distinct from disinflation, a slow-down in the inflation rate, i.e. when inflation declines to a lower rate but is still positive.Economists generally believe that a sudden deflationary shock is a problem in a modern economy because it increases the real value of debt, especially if the deflation is unexpected. Deflation may also aggravate recessions and lead to a deflationary spiral.Some economists argue that prolonged deflationary periods are related to the underlying of technological progress in an economy, because as productivity increases (TFP), the cost of goods decreases.Deflation usually happens when supply is high (when excess production occurs), when demand is low (when consumption decreases), or when the money supply decreases (sometimes in response to a contraction created from careless investment or a credit crunch) or because of a net capital outflow from the economy. It can also occur due to too much competition and too little market concentration.
ChatGPT
deflation
Deflation is an economic term that refers to a decrease in the general price level of goods and services in an economy over a certain period of time. This negative inflation rate results in an increase in the purchasing power of currency. It is often associated with significant reduction in the supply of money and credit, and can lead to economic recession or depression.
Wikidata
Deflation
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. This should not be confused with disinflation, a slow-down in the inflation rate. Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods with the same amount of money over time. Economists generally believe that deflation is a problem in a modern economy because it increases the real value of debt, and may aggravate recessions and lead to a deflationary spiral. Historically not all episodes of deflation correspond with periods of poor economic growth. Deflation occurred in the U.S. during most of the 19th century. This deflation was caused by technological progress that created significant economic growth. This deflationary period of considerable economic progress preceded the establishment of the U.S. Federal Reserve System and its active management of monetary matters.
Matched Categories
Anagrams for deflation »
defoliant
Numerology
Chaldean Numerology
The numerical value of deflation in Chaldean Numerology is: 2
Pythagorean Numerology
The numerical value of deflation in Pythagorean Numerology is: 5
Examples of deflation in a Sentence
Everyone got caught up in the debate of deflation, Greece and the Ukraine crisis and so expectations were quite low, it now seems the deflation story is a positive one for the euro zone since cheaper oil means consumers spend less on energy and have more money in their purse.
Inflation has basically disappeared in Europe, this is it. Prices are down in a lot of countries and salaries are going nowhere. There's a risk to see the drop in oil pushing the euro zone into deflation, but we're not there yet, and a potential round of quantitative easing by the European Central Bank (ECB) could help avoid that.
Canadian Finance Minister Joe Oliver:
The euro area is confronting flat growth and deflation. Beyond Europe, the growth rates of key emerging economies -- China and India -- are losing steam, geopolitical crises -- in Ukraine, Iraq, and Syria -- pose serious risks, complicating the recovery ... And though America is carrying the world economy at the moment, that is simply not sustainable.
The CNY( yuan) devaluation has been important for commodity markets and we believe it signals that global macro conditions have changed, even China has now joined the negative feedback loop that is running between commodity deflation, growth and deleveraging trends...( and) we believe the net commodity market effects are bearish.
Market conditions remain challenging. Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future.
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Translations for deflation
From our Multilingual Translation Dictionary
- дефлацияBulgarian
- deflacióCatalan, Valencian
- deflaceCzech
- DeflationGerman
- deflaciónSpanish
- deflatsioonEstonian
- deflaatioFinnish
- déflationFrench
- deflazioneItalian
- デフレーション, 収縮, 通貨収縮Japanese
- អប្បផរណាKhmer
- deflasiMalay
- deflatieDutch
- deflacjaPolish
- deflaçãoPortuguese
- дефляция, снижение цен, выкачиваниеRussian
- deflacija, дефлацијаSerbo-Croatian
- deflationSwedish
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"deflation." Definitions.net. STANDS4 LLC, 2024. Web. 26 Apr. 2024. <https://www.definitions.net/definition/deflation>.
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