noun a reduction in the general level of prices in an economy
Deflation can have a negative impact on the value of assets, such as real estate and stocks, as their prices decline.
Deflation can affect businesses by reducing their revenues and profits as prices fall and consumers spend less.
Deflation is a decrease in the general price level of goods and services in an economy, leading to a reduction in consumer spending and economic growth.
Deflation is a macroeconomic phenomenon that can lead to unemployment and economic recession if not addressed effectively.
Central banks may implement policies to combat deflation, such as lowering interest rates or engaging in quantitative easing to stimulate economic activity.
Deflation can be used in economic writing to describe a decrease in the general price level of goods and services.
In psychology, deflation can refer to a cognitive distortion where a person minimizes their own accomplishments or positive qualities.
Accountants may use deflation to analyze the impact of decreasing prices on financial statements and economic indicators.
Economists often study deflation as a phenomenon that can have significant effects on an economy, such as decreased consumer spending and investment.