deflation
24
6.3
- noun
- /dɪˈfleɪʃən/
- Specialized
:
deflación
- Economic analysts are concerned that prolonged deflation may harm consumer spending and investment.
- inflation and deflation
- asset deflation
Well, guess what deflation means The value of your cash goes up.
- Well, guess what deflation means The value of your cash goes up.
- If we didn't print money, we would be in rapid deflation leading up to COVID.
- Now inflation is this rising prices, deflation is prices that are going down.
- This program of Abenomics hiked consumption taxes too, hoping to end deflation.
- The opposite would occur when countries imported more than they export, as the outflow of gold would cause deflation, making goods more attractive for export.
- I think the Weimar Republic destroyed itself in two disastrous economic calamities, the inflation and then the deflation.
- So they need to the purchasing power deflation or inflation?
- The problem deflation is a deflation in income, which creates a debt trap.
- So inflation is terrible for financial assets, deflation is great for financial assets.
- In fact, the the real policy concern is and will be deflation now down the road.
Examples
-
For China, these eventualities (deflation, employment slowdown, and eventual depreciation) might be worse than those avoided by nominal appreciation.
Academic text (2004) -
But deflation, rather than inflation, remains the larger threat to the global economy.
Academic text (2012) -
An interesting example of this situation can be used to highlight some effects of deflation during the 1930s.
Academic text (1992) -
Prices fell, resulting in deflation (5.6 percent in 1999).
Academic text (2001) -
Therefore we would, of necessity, have a tremendous, colossal deflation that would send everyone into deep poverty.
Blog text (4) -
Yet in the last year, China's economic growth rate has dropped as the economy has tipped toward deflation.
Academic text (2002) -
"Affluent and comparatively secure," they found that, given deflation, their salaries bought more during the Depression.
Academic text (1990) -
The country experienced severe deflation as prices for goods and services continued to fall.
-
In a period of deflation, the purchasing power of money increases, making it cheaper to buy goods.
Antonyms
How Severe
- Specialized
39
4.0
- Specialized
24
6.3
65
4.6
106
2.5
439
3.9
47
2.5
Surface Forms
Morphology
deflation = deflate (semi-transparent) = de + flate + ion
The economic sense is a nominalization of 'deflate' (to reduce), but the specialized meaning 'general fall in prices' is a domain-specific extension not immediately obvious to all learners.
Etymology
Deflation comes from the Latin parts de- ('down' or 'away') and flate (from flare, 'to blow'), the same root as inflation. So, economic deflation is like letting the air out of the economy: prices fall because there is less money or credit pushing them up.