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deflation

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noun de·fla·tion \di-ˈflā-shən, ˌdē-\

Simple Definition of deflation

  • : 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)

Source: Merriam-Webster's Learner's Dictionary

Full Definition of deflation

  1. 1 :  an act or instance of deflating :  the state of being deflated

  2. 2 :  a contraction in the volume of available money or credit that results in a general decline in prices

  3. 3 :  the erosion of soil by the wind

deflationary

play \-shə-ˌner-ē\ adjective

Examples of deflation in a sentence

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



1891

First Known Use of deflation

1891



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