Deflation (noun)

  1. A fall in the general price level of goods and services.
  2. A sustained decrease in the money supply, often caused by a reduction in government spending or a decrease in borrowing.

Origin:

Early 19th century, from french déflation or latin deflationem, noun of action from deflare "let fall".

Examples:

  1. The country was facing a deflation crisis, as prices were falling and the economy was shrinking.
  2. Deflation can be harmful for an economy, as it can lead to a decrease in consumer spending and business investment.
  3. Central bank tried to avoid deflation by lowering interest rates and increasing the money supply.
  4. The deflation in the housing market made it difficult for people to sell their homes.
  5. Deflation can make it difficult for companies to repay their debts, as the value of their assets falls.
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