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English definition of “debt deflation”

debt deflation

noun [U]
 
 
(also collateral deflation)
ECONOMICS, FINANCE the situation in which collateral (= property that will be sold or collected to make certain a debt is paid) becomes less valuable: The effects of a bust will be rising unemployment, followed by bad debts, then debt deflation, and then finally falling asset prices.
(Definition of debt deflation from the Cambridge Business English Dictionary © Cambridge University Press)
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