disinflation (Meaning)
Wordnet
disinflation (n)
a reduction of prices intended to improve the balance of payments
Synonyms & Antonyms of disinflation
No Synonyms and anytonyms found
disinflation Sentence Examples
- Disinflation is a decrease in the rate of inflation, typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI).
- Disinflation can be caused by a number of factors, including lower consumer spending, decreased government spending, or a decrease in the money supply.
- Disinflation can have a number of positive effects on the economy, such as lower interest rates, increased investment, and job creation.
- However, disinflation can also lead to negative consequences, such as lower wages and corporate profits.
- The Federal Reserve typically uses monetary policy to try to achieve price stability, which is defined as an inflation rate of 2%.
- If the inflation rate is too high, the Fed may raise interest rates to slow down economic growth and reduce inflation.
- If the inflation rate is too low, the Fed may lower interest rates to stimulate economic growth and raise inflation.
- Disinflation can be a sign that the economy is cooling down, which can lead to a recession.
- On the other hand, disinflation can also be a sign that the economy is simply becoming more efficient, which can lead to long-term economic growth.
- The effects of disinflation on a particular economy depend on a number of factors, including the underlying causes of the disinflation and the policies that are implemented in response to it.
FAQs About the word disinflation
a reduction of prices intended to improve the balance of payments
No synonyms found.
No antonyms found.
Disinflation is a decrease in the rate of inflation, typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI).
Disinflation can be caused by a number of factors, including lower consumer spending, decreased government spending, or a decrease in the money supply.
Disinflation can have a number of positive effects on the economy, such as lower interest rates, increased investment, and job creation.
However, disinflation can also lead to negative consequences, such as lower wages and corporate profits.
