Deflation: meaning, definitions and examples
๐
deflation
[ dษชหfleษชสษn ]
economic condition
Deflation is the reduction of the general level of prices in an economy. It occurs when the inflation rate falls below 0%, leading to an increase in the real value of money. Deflation often results in decreased consumer spending, as people anticipate lower prices in the future, which can lead to economic stagnation.
Synonyms
contraction, decrease, diminution.
Examples of usage
- The country faced severe deflation during the Great Depression.
- Deflation can be just as damaging as inflation to an economy.
- Policymakers aim to avoid deflation with monetary interventions.
Translations
Translations of the word "deflation" in other languages:
๐ต๐น deflaรงรฃo
๐ฎ๐ณ เคธเคเคเฅเคเคจ
๐ฉ๐ช Deflation
๐ฎ๐ฉ deflasi
๐บ๐ฆ ะดะตัะปัััั
๐ต๐ฑ deflacja
๐ฏ๐ต ใใใฌใผใทใงใณ
๐ซ๐ท dรฉflation
๐ช๐ธ deflaciรณn
๐น๐ท deflasyon
๐ฐ๐ท ๋ํ๋ ์ด์
๐ธ๐ฆ ุงููู ุงุด
๐จ๐ฟ deflace
๐ธ๐ฐ deflรกcia
๐จ๐ณ ้่ดง็ดง็ผฉ
๐ธ๐ฎ deflacija
๐ฎ๐ธ verรฐhjรถรฐnun
๐ฐ๐ฟ ะดะตัะปััะธั
๐ฌ๐ช แแแคแแแชแแ
๐ฆ๐ฟ deflyasiya
๐ฒ๐ฝ deflaciรณn
Etymology
The term 'deflation' originates from the Latin word 'deflatio', which means 'to let out air'. It began to be used in the economic context in the early 20th century to describe the phenomenon of falling prices. The concept became particularly significant during the Great Depression, when many economies around the world experienced prolonged periods of deflation. Over time, economists have studied deflation extensively, especially its causes and effects, including how it can lead to reduced economic activity, increased unemployment, and a higher real debt burden. The understanding of deflation has evolved, leading to various monetary policies aimed at preventing it and managing inflation.