Definition of Reflation:
Intentional acceleration of economic activity by a government, usually by using inflationary (public spending) measures, to reverse deflationary trends.
Expansion in the level of output of an economy by government stimulus, using either fiscal or monetary policy.
Reflation aims to stop deflation—the general decline in prices for goods and services that occurs when inflation falls below 0%. It is a long-term shift, often characterized by a prolonged reacceleration in economic prosperity that strives to reduce any excess capacity in the labor market.
Reflation is a fiscal or monetary policy designed to expand output, stimulate spending, and curb the effects of deflation, which usually occurs after a period of economic uncertainty or a recession. The term may also be used to describe the first phase of economic recovery after a period of contraction.
How to use Reflation in a sentence?
- Policies include tax cuts, infrastructure spending, increasing the money supply and lowering interest rates.
- Reflation is a policy that is enacted after a period of economic slowdown or contraction.
- The goal is to expand output, stimulate spending and curb the effects of deflation.
- Signs of global reflation are definitely in the air.
Meaning of Reflation & Reflation Definition