Definition from Wiktionary, the free dictionary
deflation (plural deflations)
- An act or instance of deflating.
- The loss caused utter deflation and disappointment among the fans.
- (economics) A decrease in the general price level, that is, in the nominal cost of goods and services as well as wages.
- (economics, euphemistic) An economic contraction.
1969 March 13, “Stans to seek foreign trade”, in Christian Science Monitor:
- Beyond that, there is the hope that deflation of the US economy which the administration has in mind will, overtime; stem the import flood.
1976 October 11, “Unions Hold Key To British Stability”, in Milwaukee Sentinel:
- It also must be acknowledged that Britain's problems won't be solved by an abrupt deflation of the economy.
1978 June 3, “Valley Pipe Dream Wrecked Economy”, in Calgary Herald:
- The great deflation of the northern economy occurred with the rupturing of the Mackenzie Valley pipe dream.
decrease in the general price level