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Meaning of deflate

 

 

 

Deflate

 

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Business glossary

 

Meaning of term deflate :

 

To deflate the economy means to set out to deliberately reduce the level of economic activity. This is needed when there is an excess level of demand that may be leading to demand-pull inflation. Deflating means using deflationary policies like increasing taxes or reducing government expenditure (fiscal policies) or increasing interest rates (monetary policy).

 

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Source : http://business-tes.wikispaces.com/file/view/Glossary.doc

 

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Meaning of term deflate

 

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