Business Glossary - - Info
business and finance Glossary
Business Glossary


Business and Finance glossary of business terms and commonly used words.
Dictionary of words from business, investing, self help and politics.
Deflation Definition Glossary of Finance Terms - Deflation

Deflation : Deflation is a negative inflation rate and refers to a decrease in the overall price or cost of goods and services. While inflation reduces the actual value of money, deflation increases the value of each unit of currency but is usually seen as a negative result of a poor economy where there has been a decrease in the money supply and less credit lending. Where general prices may rise or fall, deflation is the actual shift of supply and demand in the economy of most goods and services.
Sponsored links

As demand falls, prices follow and as prices fall, often times consumers wait to purchase. This, in turn, reduces the ability for companies to produce products due to lack of funds. A reduction in finances leads to pay cuts, layoffs, and downsizing which often exacerbates the deflation problem. This feedback loop is considered a primary factor in the deflationary spiral.

Deflation can sometimes result in this deflationary spiral when demand decreases and prices drop, delaying most economic transactions, slowing down economic growth and investments. Deflation is sometimes the result of extended recessions or economic depressions where people are less inclined to spend money.

Also called : Deflationary Economy, Deflated.

::: Home> Glossary of Terms> What is Deflation?

Business Success Portal Related Business Resources @

Business Terms : Bear Market - Capitalism - 1929 Wall Street Crash - Black Monday 1987 - USA - Depression - Recession - Stagflation - Finance Glossary
Business Quotes : Bear Market
- Bull Market - Capitalism - Challenges - Crisis - Debt - Finance - Greed - Investing - Long Term Investing - Losing - Money - Negative - Problems - Selling - Stock Market - Stocks - Stress - Values - Wall Street - Weakness - Wealth - All Quotes

Related Deflation Articles and News

business and finance offers Special Offers

Wholesale Merchandise Directory
Free Wholesalers List

business and finance resources Business Success

Subscribe to receive a motivational business and finance quote three times each week. Includes quotes from International leaders in business, finance, and motivation.