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.