deflation
/dɪˈfleɪʃ(ə)n
/noun [mass noun]
1The action or process of deflating or being deflated: the deflation of the illusion that the 1960s were a perpetual party...
- Martin showed no signs of deflation after exiting the 6-2 mauling against Chester 48 hours earlier with nothing to show from a man of the match performance.
- The elation at Edgbaston and Old Trafford may well give way to substantial deflation at not being able to win this latest battle and go 2-1 up.
- Words of encouragement and advice, and indeed a supportive phone call during the week, have always compensated any feeling of deflation at the scales refusing to go downwards.
2 Economics Reduction of the general level of prices in an economy: a time of high unemployment and deflation [count noun]: a long deflation lasted until about 1896...
- ‘Growth (in Japan) has recently been constrained by persistent deflations and high levels of nonperforming loans that restrain bank lending,’ she said.
- The last section provides three studies that explore the behavior of asset prices during deflations.
- Not every strong decline in asset prices causes deflation, but all major deflations in the world were related to a sudden, continuing and substantial fall in values of assets.
3 Geology The removal of particles of rock, sand, etc. by the wind.If the lake bed became completely dry, material could have been lost through wind erosion or deflation....
- Wind deflation probably destroyed the original soil that formed on the upper Oliver Platform.
Derivatives
deflationist
/ noun & adjective ...- Recently, some deflationists have put forth an argument that a creature known as a ‘synthetic dollar short’ will drive a substantial appreciation of the dollar.
- Here is one of the foremost deflationists arguing that silver is a great buy.
- Many deflationists argue that Germany will follow Japan into a deflationary spiral.
Origin
Late 19th century (in the sense 'release of air from something inflated'): from deflate; sense 3 via German from Latin deflat- 'blown away', from the verb deflare.