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 ?
Indeed, should central banks get their timing right and succeed in reflating the economy, that may simply allow governments to deflect any searching examination of the inequities that presaged overinvestment and excessive borrowing in the first place.
In the second quarter of 1998, Finance Minister Anwar Ibrahim dramatically changed course again, turning away from contractionary measures and instead reflating the economy through spending policies designed to stem the downturn.
The BOJ has seen the first positive growth in November's core CPI (excluding fresh food), a substantially weaker yen and a strong pick up in bank lending to the real estate sector in the third quarter as strong evidences of a reflating economy and has made clear its desire to mop up the excess liquidity that was injected into the banking system under the quantitative easing policy introduced in 2001.
While the economy is not yet in recession," Imirhe says, "it has come pretty close, which is why the government is now ready to cautiously start reflating.
Suspensions can sag and need reflating so if the car doesn't return to level within one bounce after a push on each corner look elsewhere or have it profes- sionally checked.
The return of growth: reflating with equities and real assets - Having shunned equities for the perceived safety of fixed income in recent years, investors with long-term horizons will revisit the role of equities and other assets that offer the best ability to provide positive real returns during the continued road to economic recovery.
The mechanics of reflating Europe and Japan will likely necessitate less expensive currencies, even from the seemingly battered levels existent today.