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Reflation
(redirected from reflate)

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia 0.01 sec.
Reflation
Government monetary action that causes a reversal of deflation.

Reflation
The act of a government printing money or taking similar actions to combat deflation. Deflation occurs when a recession is so severe that prices are reduced to inspire demand. This often leads to further economic decline. Reflation marks an attempt to increase money supply to increase spending in an attempt to spur growth. See also: Inflation.


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Governments are out there doing what they can to print money and reflate economies; it means that the more they hold in reserves to support the printing of currency, the better.
Effectively, the Fed is trying to reflate the economy.
The Fed is desperate to keep mortgage rates low to reflate the housing market, and last week it promised to inject hundreds of billions of dollars more in this effort.
 
 
 
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