Deflation
in example sentence
Indeed, according to the American economist Irving Fisher’s long established “debt-
deflation
” theory, when an over-indebted economy suffers a shock, the joint effects of debt and
deflation
can trigger a downturn.
More example sentences with word deflation
On the other hand, if the money supply remains the same, while more goods and services are produced, each dollar's value would increase in a process known as
deflation.
But
deflation
would make people want to hold onto their money, and a decrease in consumer spending would reduce business profits, leading to more unemployment and a further decrease in spending, causing the economy to keep shrinking.
In terms of price performance, that's a 40 to 50 percent
deflation
rate.
We had
deflation
during the Depression, but that was collapse of the money supply, collapse of consumer confidence, a completely different phenomena.
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