Reflation


Reflation
A fiscal or monetary policy, designed to expand a country's output and curb the effects of deflation. Reflation policies can include reducing taxes, changing the money supply and lowering interest rates.

The term "reflation" is also used to describe the first phase of economic recovery after a period of contraction.

Reflation policy has been used by American governments, to try and restart failed business expansions since the early 1600s. Although almost every government tries in some form or another to avoid the collapse of an economy after a recent boom, none have ever succeeded in being able to avoid the contraction phase of the business cycle. Many academics actually believe government agitation only delays the recovery and worsens the effects.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Reflation — is the act of stimulating the economy by increasing the money supply or by reducing taxes. It is the opposite of disinflation. It can refer to an economic policy whereby a government uses fiscal or monetary stimulus in order to expand a country s …   Wikipedia

  • Reflation — Réflation La réflation est l accroissement de l’activité économique engendré essentiellement par l’injection de monnaie et de crédits. Voir aussi Article connexe Inflation Portail de la numismatique …   Wikipédia en Français

  • Réflation — La réflation est l accroissement de l’activité économique engendré essentiellement par l’injection de monnaie et de crédits. Voir aussi Article connexe Inflation Portail de la numismatique …   Wikipédia en Français

  • reflation — ☆ reflation [rē flā′shən ] n. [ RE + (IN)FLATION] a type of inflation designed to restore a former price structure, accomplished by decreasing the purchasing power of currency by the use of governmental monetary powers …   English World dictionary

  • Reflation — Unter Reflation versteht man eine aggressiv auf Vermeidung von Deflation ausgerichtete Wirtschaftspolitik. Dabei ordnet der Staat alle wirtschaftspolitischen Zwänge (wie ausgeglichener Staatshaushalt, Inflationsgefahr etc.) der Vermeidung von… …   Deutsch Wikipedia

  • reflation — Government monetary action that causes a reversal of deflation. Bloomberg Financial Dictionary * * * reflate re‧flate [riːˈfleɪt] verb [intransitive, transitive] ECONOMICS if a government reflates the economy, it increases government spending,… …   Financial and business terms

  • Reflation — Re|fla|ti|on* die; , en <aus gleichbed. engl. reflation, Analogiebildung zu engl. inflation, vgl. ↑Inflation> finanzpolitische Maßnahme zur Erhöhung der im Umlauf befindlichen Geldmenge u. damit zur Überwindung einer ↑Depression …   Das große Fremdwörterbuch

  • reflation — noun Etymology: re + flation (as in deflation) Date: 1932 restoration of deflated prices to a desirable level • reflate verb • reflationary adjective …   New Collegiate Dictionary

  • reflation — reflationary /ri flay sheuh ner ee/, adj. /ri flay sheuhn/, n. restoration of economic activity, consumer prices, etc., to higher levels by manipulating monetary policy. [1930 35; RE + (IN)FLATION] * * * …   Universalium

  • reflation — noun The act of restoring a deflated general level of prices to a previous or desired level. Ant: disinflation, deflation …   Wiktionary


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