deflation

de·fla·tion

noun \di-ˈflā-shən, ˌdē-\

Definition of DEFLATION

1

: an act or instance of deflating : the state of being deflated

2

: a contraction in the volume of available money or credit that results in a general decline in prices

3

: the erosion of soil by the wind

— de·fla·tion·ary \-shə-ˌner-ē\ adjective

Examples of DEFLATION

1. Economists worry that deflation will bring the country into recession.

First Known Use of DEFLATION

1891

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer