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disinflation |
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Disinflation A slowing of the rate at which prices increase. Typically, this occurs during a recession as sales drop and retailers are not able to pass on higher prices to customers. Notes: Disinflation is not to be confused with deflation, where prices actually drop.See also: Deflation, Hyperinflation, Inflation, Inflationary Psychology, Reflation, Stagflation, Stagnation Disinflation A decrease in the rate of inflation.
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| After a deep recession, a healthy disinflation process ensued from 1983-96--bringing tight money, lower tax rates and falling commodity prices. Depreciate the actual real exchange rate through German disinflation (the Issing route); Usually, this mode of differential accumulation is accompanied by falling military spending, disinflation, and revived growth. |
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