Reflation


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Related to Reflation: recession, stagflation

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 ?
But markets remain extremely doubtful that European Central Bank (ECB) reflation will go hand-in-hand with reform in Europe.
The monetary reflation factor alone could be enough to see gold rise well above $2000.
A solution will have to entail some reflation and growth as well as re- duction in government spending.
I do not think Keynes would be arguing at this point for reflation. Every pounds 24 of each pounds 100 the Government spends is being borrowed.
'Real estate capital remains 'sticky' and we think the sector is part- way through a prolonged period of asset stagflation rather than asset reflation,' Nomura said in a note.
In 2011, the policy-driven themes of reflation, which is the intentional pursuit of modestly higher prices, and a broader U.S.
But a Wicksell-Hayek recession is not amenable to fiscal reflation. Indeed, Hayek took the extreme point of view that it would make things worse by distorting prices further.
But far more influential may have been the change of heart that took place among French Socialists following the collapse of their experiment in Keynesian reflation in the early 1980's.
Probably not, he said, because "controlled reflation" of the economy is expected.
They have cause to be worried, given Washington's astonishing bet on fiscal and monetary reflation. The Obama Administration's epic spending spree means the Treasury will have to float trillions of dollars in new debt in the next two or three years alone.
Summary: infrastructural mega-projects carried out by Algeria, as part of the plans for the economic reflation, were presented in Rome by Transport Minister Amar Tou, at the 6th Conference of the Group of Western Mediterranean Transport Ministers (GTMO 5+5), held on Tuesday and Wednesday in Rome.
reflation. Treasury and the Federal Reserve are flooding the world with dollars to break the recession, and the world is rightly getting nervous.