Reflation

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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.

reflation

an increase in the level of NATIONAL INCOME and output. A reflation is often deliberately brought about by the authorities in order to secure FULL EMPLOYMENT and to increase the rate of ECONOMIC GROWTH. Instruments of reflationary policy include fiscal measures (for example, tax cuts) and monetary measures (for example, lower interest rates). See also FISCAL POLICY, MONETARY POLICY, DEFLATIONARY GAP, DEMAND MANAGEMENT.
References in periodicals archive ?
Prices for certain of the Company's private-label MBS reflated significantly during 2010 and loss-adjusted yields in those assets declined accordingly.
As a consequence movements in the residual between the expenditure and reflated output estimate imply a fault with the expenditure data, while movements in the residual between income and reflated output point to a problem with the income data.
As market prices for the Company's non-agency MBS portfolio have appreciated substantially, the Company now has the opportunity to migrate a portion of its reflated capital from appreciated non-agency MBS to hedged and appropriately levered agency MBS with significantly higher cash returns.
The results are then reflated to current-dollar values using commodity price indexes.