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Glossary Term: DEFLATION

Definition(s) for DEFLATION:


1. ) Opposite of inflation, it referes to a reduction in consumer or wholesale prices. A decline in the general price level of goods and services that results in increased purchasing power of money. Deflation is not always good for an economy because companies have no pricing power.

2. ) A drop in general price levels, usually caused by increased demand for money that isn't offset by an increased money supply, or a drop in the money supply that isn't offset by a drop in the demand for money


See Also:
DOUBLE DEFLATION


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