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Business Dictionary :
Deflate
Deflate
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Deflate : verb : to deflate the economy = to reduce activity in the economy by cutting the supply of money
Deflation : noun : reduction in economic activity
Deflationary : adjective : an action which can cause deflation
• The government has introduced some deflationary measures in the budget.
QUOTE : The strong dollar’s deflationary impact on European economies as national governments push up interest rates. (Duns Business North)