Reflation

Reflation

Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes. It is the opposite of disinflation. It can refer to an economic policy whereby a government uses fiscal or monetary stimulus in order to expand a country's output. This can possibly be achieved by methods that include reducing tax, changing the money supply, or even adjusting interest rates. Just as disinflation is an acceptable antidote to high inflation, reflation is considered to be an antidote to deflation (which, unlike inflation, is considered bad regardless how high it is).

Originally it was used to describe a recovery of price to a previous desirable level after a fall caused by a recession. Today it also (in addition to the above) describes the first phase in the recovery of an economy with increasing demand from a slump.


Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Reflation — Réflation La réflation est l accroissement de l’activité économique engendré essentiellement par l’injection de monnaie et de crédits. Voir aussi Article connexe Inflation Portail de la numismatique …   Wikipédia en Français

  • Réflation — La réflation est l accroissement de l’activité économique engendré essentiellement par l’injection de monnaie et de crédits. Voir aussi Article connexe Inflation Portail de la numismatique …   Wikipédia en Français

  • reflation — ☆ reflation [rē flā′shən ] n. [ RE + (IN)FLATION] a type of inflation designed to restore a former price structure, accomplished by decreasing the purchasing power of currency by the use of governmental monetary powers …   English World dictionary

  • Reflation — Unter Reflation versteht man eine aggressiv auf Vermeidung von Deflation ausgerichtete Wirtschaftspolitik. Dabei ordnet der Staat alle wirtschaftspolitischen Zwänge (wie ausgeglichener Staatshaushalt, Inflationsgefahr etc.) der Vermeidung von… …   Deutsch Wikipedia

  • reflation — Government monetary action that causes a reversal of deflation. Bloomberg Financial Dictionary * * * reflate re‧flate [riːˈfleɪt] verb [intransitive, transitive] ECONOMICS if a government reflates the economy, it increases government spending,… …   Financial and business terms

  • Reflation — A fiscal or monetary policy, designed to expand a country s output and curb the effects of deflation. Reflation policies can include reducing taxes, changing the money supply and lowering interest rates. The term reflation is also used to… …   Investment dictionary

  • Reflation — Re|fla|ti|on* die; , en <aus gleichbed. engl. reflation, Analogiebildung zu engl. inflation, vgl. ↑Inflation> finanzpolitische Maßnahme zur Erhöhung der im Umlauf befindlichen Geldmenge u. damit zur Überwindung einer ↑Depression …   Das große Fremdwörterbuch

  • reflation — noun Etymology: re + flation (as in deflation) Date: 1932 restoration of deflated prices to a desirable level • reflate verb • reflationary adjective …   New Collegiate Dictionary

  • reflation — reflationary /ri flay sheuh ner ee/, adj. /ri flay sheuhn/, n. restoration of economic activity, consumer prices, etc., to higher levels by manipulating monetary policy. [1930 35; RE + (IN)FLATION] * * * …   Universalium

  • reflation — noun The act of restoring a deflated general level of prices to a previous or desired level. Ant: disinflation, deflation …   Wiktionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”