noun de·fla·tion \di-ˈflā-shən, ˌdē-\

: a decrease in the amount of available money or credit in an economy that causes prices to go down

: the act or process of letting air or gas out of (something)

Full Definition of DEFLATION

:  an act or instance of deflating :  the state of being deflated
:  a contraction in the volume of available money or credit that results in a general decline in prices
:  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


Other Economics Terms

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


Next Word in the Dictionary: deflationary gapPrevious Word in the Dictionary: deflateAll Words Near: deflation
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