inflation of currency after a period of deflation; restore the system to a previous state
The act of restoring a deflated general level of prices to a previous or desired level.
Origin: parallel to deflation
Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy back up to the long-term trend, following a dip in the business cycle. It is the opposite of disinflation, which seeks to return the economy back down to the long-term trend. Reflation, which can be considered a form of inflation, is contrasted with inflation in that "bad" inflation is inflation above the long-term trend line, while reflation is a recovery of the price level when it has fallen below the trend line. For example, if inflation had been running at a 3% rate, but for one year it falls to 0%, the following year would need 6% inflation to catch back up to the long-term trend. This higher than normal inflation is considered reflation, since it is a return to trend, not exceeding the long-term trend. This distinction is predicated on a theory of economic growth where there is long-term growth in the economy and price level, which is widely accepted in economics. Just as disinflation is considered an acceptable antidote to high inflation, reflation is considered to be an antidote to deflation.
The numerical value of reflation in Chaldean Numerology is: 9
The numerical value of reflation in Pythagorean Numerology is: 1
Sample Sentences & Example Usage
Nevertheless, we would expect a markdown of EZ (eurozone) banks in particular as they have been recent strong performers and clear beneficiaries of the rather simplistic 'Europe is recovering' reflation trade.
Unlike 2010, the eurozone banking system is much better insulated from possible contagion following the latest negative developments in Greece, nevertheless, we would expect a markdown of EZ (eurozone) banks in particular as they have been recent strong performers and clear beneficiaries of the rather simplistic 'Europe is recovering' reflation trade.
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