BEGINNER

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

ONLINE EVENTS

FEE offers live online events for people new to the economic, ethical, and legal principles of a free society.

CURRENT ISSUE

November 2014

It's been 40 years since F. A. Hayek received his Nobel Prize. His insights, particularly on the distribution of knowledge and the impossibility of economic planning, remain hugely important today. In this issue, we look back on the influence of his work. Max Borders and Craig Biddle debate whether liberty must be defended from one absolute foundation, further reflections on Scottish secession, and how technology is already changing our world for the better--including how robots, despite the unease they cause, will only accelerate this process.
Download Free PDF

PAST ISSUES

SUBSCRIBE

RENEW YOUR SUBSCRIPTION

img E-mail Subscription

VIEW PRIVACY POLICY