Example collocations logo

Deflation in sentence

696 examples of Deflation in a sentence

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.
If you have 50 percent deflation, people may increase their volume 30, 40 percent, but they won't keep up with it."
That's a 50 percent deflation rate.
But, in any case, the deflation of this glacier since 1984 has been higher than the Eiffel Tower, higher than the Empire State Building.
On Wicksell’s definition – the best, and, in fact, the only definition I know of – the market interest rate was, if anything, above the natural interest rate in the early 2000’s: the threat was deflation, not accelerating inflation.
Small Steps to European GrowthPARIS – The topics chosen by the European Central Bank for its annual forum in Sintra, Portugal, at the end of May were not deflation, quantitative easing, or financial stability.
During the Great Depression, a spiral of protectionist trade quotas and tariff restrictions was used to combat monetary deflation, as popular demand for political action met legislative “log-rolling” by representatives of groups with very different – and often very locally oriented – policy priorities.
There are a few exceptions: After more than two decades, Japan’s economy appears to be turning a corner under Prime Minister Shinzo Abe’s government; but, with a legacy of deflation stretching back to the 1990’s, it will be a long road back.
But Prime Minister Shinzo Abe, in his second time around leading the government, promises to force the Bank of Japan finally to end deflation, and that the public sector generally will do more to support economic growth.
Recently, opponents of structural reform have put forward more exotic objections – most notably the problem caused by deflation when policy interest rates are at zero.
In Shanghai, the G-20 foreign ministers committed to use all available tools – structural, monetary, and fiscal – to boost growth rates and prevent deflation.
These impasses have fueled growing fear that we are “out of ammunition” to fight inadequate growth and potential deflation.
Deflation increased real interest rates and curbed economic activity, thereby setting off another round of deflation, and so on.
It was deflation, not hyperinflation, that destroyed the Weimar Republic.
Continued deflation would also have destroyed Japan’s constitutional system, as it did Germany’s.
Nonetheless, such a purely macroeconomic approach to the battle against deflation would almost certainly not be optimal.
Because deflation, like inflation, is ultimately a monetary phenomenon, fiscal and monetary weapons are the most critical means to combating it.
In addressing the post-2008 economic malaise, which stems from over-indebtedness, policymakers are correct to focus on the threat of debt deflation, which can lead to depression.
But, in order to stave off the threat of deflation and depression, it is targeting a lower unemployment rate, below 6.5%.
Such an approach would reduce the risk of debt deflation, while capping inflation expectations to prevent a damaging surge in prices as recovery takes hold.
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.
In short, China’s liquidity troubles are rooted in the recent buildup of leverage, which has triggered debt deflation.
The Deflation BogeymanBRUSSELS – Central banks throughout the developed world have been overwhelmed by the fear of deflation.
In fact, even during Japan’s so-called “lost decades,” per capita income grew by as much as it did in the United States and Europe, and the employment rate rose, suggesting that deflation may not be quite as nefarious as central bankers seem to believe.
By this measure, there is no deflation: The GDP price index (called GDP deflator) in developed countries is increasing by 1-1.5%, on average.
One might expect this evidence to compel central bankers to rethink their current concerns about deflation.
But they remain committed to pursuing their inflation targets, convinced that even a slight bout of deflation could initiate a downward spiral, with falling demand causing prices to decline further.
Next