Economics. a fall in the general price level or a contraction of credit and available money (opposed to inflation).Compare disinflation.
the erosion of sand, soil, etc., by the action of the wind.
Origin of deflation
Related formsde·fla·tion·ar·y, adjectivede·fla·tion·ism, nounde·fla·tion·ist, noun, adjectivenon·de·fla·tion, nounnon·de·fla·tion·ar·y, adjectiveself-de·fla·tion, noun
First recorded in 1890–95; deflate
Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019
Related Words for deflationdecline
Examples from the Web for deflation
Contemporary Examples of deflation
The basic idea behind austerity is that deflation via government cuts will rein in budget deficits and sovereign debt.
Deflation also means that the economy adjusts to real shocks in the most disruptive way possible.
I join most economists in thinking that deflation is bad, and it will be good if Japan can stop it.
But if inflation is negative--i.e., if they have deflation--then they have to do something more drastic.
Deflation causes money hoarding--if that dollar you have now will be worth more later, it only makes sense to spend it later.
Historical Examples of deflation
Three pairs of lungs sighed audibly in process of deflation.
Deflation, on the other hand, is usually a much shorter period.
It was led down the path of deflation, which the IMF has plunged half the world into.
They had turned his deflation into antagonism, his ignorance into distrust.
Industry during the period of deflation goes through a process like that of an over-fat man taking a Turkish bath.
British Dictionary definitions for deflation
Derived Formsdeflationary, adjectivedeflationist, noun, adjective
the act of deflating or state of being deflated
economics a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and pricesCompare disinflation
geology the removal of loose rock material, sand, and dust by the wind
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition
© William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
Word Origin and History for deflation
1891, "release of air," from deflate + -ion. In reference to currency or economic situations, from 1920.
Online Etymology Dictionary, © 2010 Douglas Harper
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.
The American Heritage® Science Dictionary
Copyright © 2011. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
A decrease in prices, often stated as an increase in the value of money, related to a decline in spending by consumers. (Compare inflation.)
The New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.