Definition Of deflationary

of, characterized by, or tending to cause economic deflation.

There are always inflationary and deflationary spots in an economy at the same time.

Example Of deflationary

  • A falling dollar would be a major deflationary influence on the world economy, notes Levy.

  • All of this can exacerbate an economic downturn and, in turn, generate greater deflationary pressures.

  • Another more speculative concern is that it could increase the vulnerability of the economy to deflationary forces.

  • But such reforms and restructurings are very deflationary in highly indebted economies.

  • By dampening expected future sales, a deflationary monetary policy may decrease the firm's net worth.


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