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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 noun from the Cambridge Business English Dictionary © Cambridge University Press)
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