collateral deflation - definition in the Business English Dictionary - Cambridge Dictionaries Online

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English definition of “collateral deflation”

collateral deflation

noun [U]
 
 
( also debt deflation) FINANCE
a situation in which collateral becomes less valuable: The most dangerous deflation is collateral deflation where the value of the collateral underlying the financial system plunges and destroys the net worth of the banking system.
(Definition of collateral deflation from the Cambridge Business English Dictionary © Cambridge University Press)
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