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deflation definition - finance
Declining prices for goods, services, and/or assets that are caused by decreases in personal, government, or investment spending. Deflation can also be caused by a reduction in the supply of money or credit, according to monetarists. Inflation, which is an increase in prices, is the opposite of deflation. Both can be damaging to the economy if they are at excessive levels.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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