deflation

[dih-fley-shuhn]

noun

1. the act of deflating or the state of being deflated.

2. Economics.,  a fall in the general price level or a contraction of credit and available money (inflation ).

3. the erosion of sand, soil, etc., by the action of the wind.

deflation

/ dɪˈfleɪʃən /

noun

1. the act of deflating or state of being deflated

2. economics a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices Compare disinflation

3. geology the removal of loose rock material, sand, and dust by the wind

deflation

1. The lifting and removal of fine, dry particles of silt, soil, and sand by the wind. Deflation is common in deserts and in coastal areas that have sand dunes.

deflation

1. A decrease in prices, often stated as an increase in the value of money, related to a decline in spending by consumers. (Compare inflation.)

Other Word Forms

• deflationary adjective
• deflationism noun
• deflationist noun
• nondeflation noun
• nondeflationary adjective
• self-deflation noun

Word History and Origins

Origin of deflation¹

First recorded in 1890–95; deflate + -ion

Example Sentences

She landed safely, but the parade has taken deflation very seriously since.

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He cites the example of Japan and China where huge debt issuance caused monetary deflation to which their central banks responded by allowing their currencies to devalue.

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First, CPUs are increasingly being replaced by GPUs to supplement the industry’s need for compute cost deflation.

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Persistent deflation has weighed on nominal gross domestic product growth, dragging on corporate profits and wage growth, MS said.

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It may seem like a good idea to have cheaper goods, but deflation can force firms out of business and drag on growth overall.

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Related Words

• bankruptcy 
• collapse 
• decline 
• downturn 
• hard times www.thesaurus.com
• inflation 
• shakeout 
• slide 
• slump 
• stagnation 
• unemployment