Deflationary (Adjective)
Meaning
Associated with or tending to cause decreases in consumer prices or increases in the purchasing power of money; "deflationary measures".
Classification
All adjective clusters.
Examples
- The central bank implemented deflationary monetary policies to combat the economic downturn.
- A decrease in aggregate demand can have a deflationary effect on the economy, leading to lower prices and reduced spending.
- The government's austerity measures were criticized for being deflationary, as they reduced public spending and increased taxes.
- Some economists argue that a moderate level of deflation can be beneficial, as it increases the purchasing power of consumers and stimulates economic growth.
- The country's deflationary environment made it difficult for businesses to raise prices, leading to reduced profit margins and decreased investment.