deflation n what it means
DEFINITION of 'Deflation'. A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending.The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression.eflation, or negative inflation, happens when prices fall because the supply of goods is higher than the demand for those ...