Deflation

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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

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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.



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Deflation Sample Sentences in News


  • Should the euro zone really fear demon deflation?
    If the multi-billion dollar consumer electronics industry can function fine with constantly falling prices, why is deflation in the broader economy such a threat? European Central Bank policymakers have repeatedly warned of the risk of being drawn into a prolonged downward price spiral, a danger that has led them to an unprecedented government bond-buying programm Read more on this news related to 'Deflation'
  • Spain Minister: We have 'good' deflation
    You won't find policymakers in Spain panicking anytime soon about the fear of deflation. Read more on this news related to 'Deflation'
  • Quantitative easing, deflation explained
    The European Central Bank unveiled Thursday an eagerly-awaited programme of sovereign bond purchases, known as quantitative easing or QE, to ward off deflation in the eurozone. After the ECB held its key interest rates at their current all-time lows at its first policy meeting of 2015, central bank chief Mario Draghi said a programme would be launched to buy 60 bi Read more on this news related to 'Deflation'

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