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Decrease and Deflation

noun

  • A change downward.
    • usage: "there was a decrease in his temperature as the fever subsided"; "there was a sharp drop-off in sales"
  • A process of becoming smaller or shorter.
  • The amount by which something decreases.
  • The act of decreasing or reducing something.

verb

  • Decrease in size, extent, or range.
    • usage: "The amount of homework decreased towards the end of the semester"; "The cabin pressure fell dramatically"; "her weight fell to under a hundred pounds"; "his voice fell to a whisper"
  • Make smaller.
    • usage: "He decreased his staff"

noun

  • Geology) the erosion of soil as a consequence of sand and dust and loose rocks being removed by the wind. (
    • usage: "a constant deflation of the desert landscape"
  • A contraction of economic activity resulting in a decline of prices.
  • The act of letting the air out of something. .

Deflation Is the economic and financial phenomenon which represents declining prices particularly for goods and services. It can occur in countries with strengthening currencies. Here, the cost of imports would tend to decline. It can also occur in countries which are experiencing depressed economic conditions. At such times of declining output, sales of assets generate considerable downside pressure on prices. Deflation can be viewed in monetary terms when the money supply is constracting to such an extent that one unit of currency purchases increased amounts of goods and services.