Definition, Meaning & Synonyms
deflationary
Adjective
/dɪˈfleɪʃənəri/
Definition
Relating to or causing a reduction in the general price level of goods and services in an economy.
Examples
- During a deflationary period, the purchasing power of consumers increases.
- Central banks often respond to deflationary pressures by lowering interest rates.
- The economy entered a deflationary spiral when prices kept falling, discouraging spending.
Meaning
The term ‘deflationary’ describes economic conditions characterized by falling prices, which can happen when the supply of money decreases, leading to reduced consumer spending and investment.
Synonyms
- Disinflationary
- Price-reducing
- Economically contractionary
