Deflation

Double click on any word to get a popup explanation of the word and sample sentences
Dictionary | Wikipedia | Synonyms | News

Deflation Meaning and Definition in Dictionary

Definitions from Wordnet 2.0


  • the act of letting the air out of something
  • a contraction of economic activity resulting in a decline of prices
  • (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"

Definitions from Wiktionary


  • (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" ,
  • a contraction of economic activity resulting in a decline of prices ,
  • the act of letting the air out of something

Would you like to add your own explaination to this word 'Deflation'?

Deflation Meaning and Definition in Wikipedia


Deflation means that generally the prices of products are going down. It is the opposite of inflation. It is said, that deflation happens when there is less money than there are goods (goods are almost any kind of product). It is also said that deflation is a sign of a weak state of that country's economy, because deflation usually happens during an economic collapse. Deflation is thought to be even worse than inflation.

Deflation starts when people are waiting for prices to go down even more. They will then spend less money. Because of that, companies can not afford to keep up the amount of goods that are made, and have to lower that amount, as well as fire workers to make even a small profit.

Even if an economy is growing, there can be some amount of deflation - if the amount of money going around grows slower than the making of goods. There has not been much deflation in the world since the 1930s, except in Japan.



Words and phrases related to 'Deflation'



Deflation Sample Sentences in News



Want to be famous? Add your definition to the meaning of 'Deflation'


Search for more meaning of 'Deflation' on the web