Definition of deflation

deflationnoun

giảm phát

/ˌdiːˈfleɪʃn//ˌdiːˈfleɪʃn/

The word "deflation" originates from the Latin words "de" meaning "down" and "flatere" meaning "to blow". In the 15th century, "deflation" referred to the act of blowing something down or extinguishing a flame. In the context of economics, the term was first used in the 1930s to describe a decrease in the overall general price level of goods and services in an economy. This is often caused by a reduction in the money supply, a decrease in aggregate demand, or a combination of both. In essence, deflation is the opposite of inflation, where prices rise. The concept of deflation was first introduced by economists such as Irving Fisher and John Maynard Keynes to describe the economic scenario where prices are decreasing. Since then, the term has become a crucial concept in macroeconomics and monetary policy.

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a reduction in the amount of money in a country’s economy so that prices fall or remain the same

sự giảm lượng tiền trong nền kinh tế của một quốc gia để giá cả giảm hoặc giữ nguyên

the action of air being removed from something

hành động của không khí được loại bỏ khỏi một cái gì đó