Disinflation (Noun)
Meaning
A reduction of prices intended to improve the balance of payments.
Classification
Nouns denoting natural processes.
Examples
- The government's disinflation policies led to a decline in export prices and an improvement in the trade deficit.
- Disinflation was achieved through a combination of monetary and fiscal measures, resulting in a significant reduction in the country's inflation rate.
- The central bank's decision to raise interest rates was intended to achieve disinflation and reduce the upward pressure on prices.
- The country's disinflation strategy involved a mixture of demand management and supply-side policies to reduce inflationary pressures.
- The policy of disinflation was accompanied by a depreciation of the exchange rate, which helped to boost exports and reduce the trade deficit.