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Deflation

A reduction in the amount of money in circulation. Such a reduction, ceteris paribus, can drive down prices. A drop in prices, called price deflation, can also occur due to an increase in productivity or in increase in demand for money

Related Publications

ARCHIVE

New Worry: Deflation

NOVEMBER 21, 2008

With the stock market crumbling and the economy shrinking, a whiff of deflation is in the air.... But economists warn that sustained deflation -- a period of falling overall prices -- would deepen the nation's economic troubles. (Washington Post, Friday)

When will we realize that money is too important to be trusted to government?

FEE Timely Classic
The Dreaded D Word by Christopher Mayer

Related Freeman Articles

IN BRIEF

Deflation Fears Emerge

JANUARY 09, 2012

ARTICLE

Are We Headed for Deflation – or Inflation?

Keynesians versus Austrians.

SEPTEMBER 15, 2010 by WILLIAM L. ANDERSON

The inflation wolf may well be at the door, but we need to do a better job of explaining why the current situation exists.

OUR ECONOMIC PAST

The History of Deflation

Deflation Is Not Such a Bad Thing

MARCH 01, 2003 by STEPHEN DAVIES

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October 2014

Heavily-armed police and their supporters will tell you they need all those armored trucks and heavy guns. It's a dangerous job, not least because Americans have so many guns. But the numbers just don't support these claims: Policing is safer than ever--and it's safer than a lot of common jobs by comparison. Daniel Bier has the analysis. Plus, Iain Murray and Wendy McElroy look at how the Feds are recruiting more and more Americans to do their policework for them.
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