Reflation (Noun)
Meaning
Inflation of currency after a period of deflation; restore the system to a previous state.
Classification
Nouns denoting natural processes.
Examples
- The government implemented a series of policies aimed at reflating the economy after a prolonged period of deflation.
- A reflation era can bring a risk that economic recovery may lag the reflation boom, and that inflation might rise too far.
- An economic stimulus package was put in place to help initiate reflating the sagging economy, boost business investment, and generate jobs.
- The central bank's plans to cut interest rates and launch a major spending program were designed to induce reflating growth in economic output.
- Critics feared the floundering central bank's reflating efforts would go too far, resulting in sharp rises in housing and stock prices long before incomes and wages pick up.