Reflation

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Related to reflate: reflationary, reinflate

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 ?
We do not preclude adding commodities exposure if China reflates sooner than we expect.
QE3 will be much smaller, and will do much less to reflate asset prices and restore growth.
The Hobson's choice before them is: reflate or deflate?
The UK Government's catastrophic financial failure underlines the need for Scotland to have responsibility to run its own affairs, with the ability to take the decisions needed to reflate the economy, contribute to recovery, and overcome the Downing Street downturn.
Also, China will be one of the first economies to recover, and it will help reflate the commodity markets, especially energy.
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.
Effectively, the Fed is trying to reflate the economy.
They had to saw into my chest, take arteries out of one of my legs and deflate and reflate my lungs.
George Osborne, the Shadow Chancellor of the Exchequer, struck a chord when he said that as we look to rebuild, there is no point in trying to reflate a balloon that has burst.
In the context of the global financial crisis and how countries are trying to revive their economies, a key concern expressed is: Why is Pakistan trying to deflate its economy at a time when all others are providing a fiscal stimulus to reflate them?
That is why the economic cabinet will identify additional resources which could form a potential pounds 1billion programme of investment to help reflate Scotland.
The attempts to reflate may not succeed if investors take fright at a perceived inflation threat.