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English definition of “deflation”

deflation

noun [U] (MONEY)    /dɪˈfleɪ.ʃən/
a reduction of the supply of money in an economy, and therefore a reduction of economic activity, that is often part of an intentional government plan to reduce prices → Compare inflation, reflation (reflate)Economics and the state of the economy a reduction in value: There has been a deflation in/of property values.Value and price decreases deflationary     /-ər.i/ US  /-er.i/ adjective a deflationary budget/policyEconomics and the state of the economy
(Definition of deflation noun (MONEY) from the Cambridge Advanced Learner's Dictionary & Thesaurus © Cambridge University Press)
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