define deflation
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- What is 'Deflation' Deflation is a contraction in the supply of circulated money within an economy, and therefore the opposite of inflation. In times of deflation, the purchasing power of currency and wages are higher than they otherwise would have been.
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deflation Deflation. Deflation, the opposite of inflation, is a gradual drop in the cost of goods and services, usually caused by a surplus of goods and a shortage of cash. Although deflation seems to increase your buying power in its early stages, it is generally considered a negative economic trend.
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Deflation, Its Causes and Why It's Bad Why Deflation Is Bad. Deflation slows economic growth. As prices fall, people put off purchases. They hope they can get a better deal later. You've probably experienced this yourself when thinking about getting a new cell phone, iPad or TV. You might wait until next year to get this year's model for less.
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Inflation and Deflation: Definition, Causes, Effects Suppliers and wages can't keep up, which leads to shortages or prices so high that most people can't afford the basics. The fifth type, galloping inflation, is when prices rise 10 percent or more a year. It can destabilize the economy, drive out foreign investors, and topple government leaders. It's a result of exchange rate fluctuations. Deflation is when prices fall, but it can be difficult to spot.
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Deflation, Its Causes and Why It's Bad Officially, deflation is measured by a decrease in the Consumer Price Index. But the CPI does not measure stock prices, an important economic indicator. For example retirees use stocks to fund purchases, and businesses use them to fund growth. That means when the stock market drops, the CPI might be missing one important indicator of deflation as it's felt in people's pocketbooks. For more, see How a Stock Market Crash Can Cause a Recession. The CPI does not include sales prices of homes.
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Definitions &Translations ablation (Noun). The progressive removal of material by any of a variety of processes such as vaporization under heat or chipping. ablation (Noun). The total removal of a glacier by melting and evaporation; the lowering of a land surface by any of several means, as in wind erosion, mass wasting.blation (Noun). The progressive removal of material by any of a variety of processes such as vaporization under heat or chipping. ablation (Noun). The total removal of a glacier by melting and evaporation; the lowering of a land surface by any of several means, as in wind erosion, mass wasting.
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What is 'Deflation' What is 'Deflation'. Deflation is a contraction in the supply of circulated money within an economy, and therefore the opposite of inflation. In times of deflation, the purchasing power of currency and wages are higher than they otherwise would have been.
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Inflation rate See also: CPI, Deflation. The inflation rate is a measure of changing prices, typically calculated on a month-to-month and year-to-year basis and expressed as a percentage.
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Disinflation Not to be confused with Deflation. Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.It is the opposite of reflation.Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising. If the inflation rate is not very high to start with, disinflation can lead to deflation – decreases in the general price level of goods and services.t is the opposite of reflation. Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising. If the inflation rate is not very high to start with, disinflation can lead to deflation – decreases in the general price level of goods and services.
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- Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. The value of a dollar does not stay constant when there is inflation.
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What is 'Inflation' Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly. Next Up.
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What is 'Inflation' DEFINITION of 'Inflation'. Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly. Next Up.nflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
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What is 'Devaluation'? A deliberate downward adjustment to the value of a country's currency, relative to another currency, group of currencies or standard.
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- Answer: To understand inflation, we first must understand what the word means. The Economics Glossary defines Inflation as: 1  Inflation is an increase in the price of a basket of goods and services that is representative of the economy as a whole.2  Inflation is an upward movement in the average level of prices. 3  Its opposite is deflation, a downward movement in the average level of prices.ecause inflation is a rise in the general level of prices, it is intrinsically linked to money, as captured by the often heard refrain  Inflation is too many dollars chasing too few goods.
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What is Inflation, How It's Measured and Its Impact on Your Investments Deflation (for example, -1%) occurs when prices actually decrease over a period of time. Please note that deflation is not the same as disinflation, which is when the rate of inflation decreases but stays positive (for example, a change from a 3% rate to a 2% rate). There are two main indices used to measure inflation. The first is the Consumer Price Index, or the CPI. The CPI is a measure of the price of a set group of goods and services. The bundle, as the group is known, contains items such as food, clothing, gasoline, and even computers.
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- deflation (countable and uncountable, plural deflations) An act or instance of deflating. The loss caused utter deflation and disappointment among the fans. (economics) A decrease in the general price level, that is, in the nominal cost of goods and services as well as wages. (economics, euphemistic) An economic contraction. quotations ▼ 1969 March 13, “Stans to seek foreign trade”, in Christian Science Monitor: Beyond that, there is the hope that deflation of the US economy which the administration has in mind will, overtime; stem the import flood. 1976 October 11, “Unions Hold Key To British Stability”, in Milwaukee Sentinel:
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deflationary policy deflationary policy. Definition. 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.
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erosion deflation - (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. planation-the process of erosion whereby a level surface is produced. soil erosion-the washing away of soil by the flow of water.
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Deflation Definition Deflation is defined as a decrease in the general price level. 1  It is a negative inflation rate. 2  Deflation means the value of money will increase.  Deflation is often associated with periods of negative or stagnant economic growth (Great Depression, Japanese economy in 1990s, early 2000s).
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What is 'Devaluation'? DEFINITION of 'Devaluation'. A deliberate downward adjustment to the value of a country's currency, relative to another currency, group of currencies or standard.Devaluation is a monetary policy tool of countries that have a fixed exchange rate or semi-fixed exchange rate.It is often confused with depreciation, and is in contrast to revaluation.EFINITION of 'Devaluation'. A deliberate downward adjustment to the value of a country's currency, relative to another currency, group of currencies or standard.
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Inflation: What Is Inflation? 1 Deflation is when the general level of prices is falling. This is the opposite of inflation.  Hyperinflation is unusually rapid inflation. In extreme cases, this can lead to the breakdown of a nation's monetary system.
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Oblation For the legal term, see Oblation (legal). Not to be confused with ablation or ablution (disambiguation). Oblation, meaning an offering (Late Latin oblatio, from offerre, oblatum, to offer), is a term used, particularly in ecclesiastical use, for a solemn offering or presentation to God.
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Inflation, Deflation and Stagflation Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression.
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The Dangers Of Deflation Deflation can be caused by a decrease in the demand for products, an increase in the supply of products, excess production capacity, increase in the demand for money, or a decrease in the supply of money or availability of credit.uring the late 1970s and early 1980s, inflation skyrocketed as high as 14.8% in the U.S. and interest rates climbed to similar levels. Few living Americans know what it's like to face the opposite phenomenon-deflation.
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Inflation and Deflation: Definition, Causes, Effects Definition: Inflation is when prices rise, and deflation is when prices fall. You can have both inflation and deflation at the same time in various asset classes. When taken to extreme, both are bad for economic growth, but for different reasons.
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- Definition of Inflation. Inflation means a sustained increase in the aggregate or general price level in an economy. Inflation means there is an increase in the cost of living. “inflation means that your money won’t buy as much today as you could yesterday. ”. In the UK the rate of inflation has varied a lot from 25% a year in 1974 to the deflation in the 1920s and 1930s.