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

  1. 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"

  2. deflationnoun

    a contraction of economic activity resulting in a decline of prices

  3. deflationnoun

    the act of letting the air out of something

GCIDE

  1. deflationnoun

    the act or process of deflating.

  2. deflationnoun

    a fall in the average prices of goods and services; -- usually associated with contraction of economic activity. Opposite of inflation. Compare disinflation.

  3. deflationnoun

    (Geol.) the erosion of land structures such as sand or soil due to the action of wind. RHUD

Wiktionary

  1. deflationnoun

    An act or instance of deflating.

    The loss cause utter deflation and disappointment among the fans.

  2. deflationnoun

    A decrease in the general price level, that is, in the nominal cost of goods and services as well as wages.

  3. deflationnoun

    An economic contraction.

Wikipedia

  1. 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

  1. 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

  1. 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.

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Numerology

  1. Chaldean Numerology

    The numerical value of deflation in Chaldean Numerology is: 2

  2. Pythagorean Numerology

    The numerical value of deflation in Pythagorean Numerology is: 5

Examples of deflation in a Sentence

  1. 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.

  2. Greg Peters:

    We are in this slow-growth world, The U.S. looks solid relative to everyone else, but the global construct is slowing. That serves as a cap for growth here in the U.S. and inflation is the same story. If anything, the bias is for disinflation and deflation instead of inflation.

  3. Giuseppe Sersale:

    Markets continue to discount disappointment over the ECB. You add oil prices making new lows, worries over U.S. high yield, China deflation and a mini credit crisis in Italy, then you have the cocktail that is weighing on markets.

  4. Angus Nicholson:

    Global markets are in panic mode as the full scale of China's slowdown becomes clearer, the word on everyone's lips is deflation - poison for equity markets. The phenomenal six-year bull market may finally meet its match in China-induced global deflation.

  5. Chief Executive Mike Coupe:

    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.

Popularity rank by frequency of use

deflation#10000#42802#100000

Translations for deflation

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"deflation." Definitions.net. STANDS4 LLC, 2024. Web. 26 Apr. 2024. <https://www.definitions.net/definition/deflation>.

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