deflation etymology

Etymology

The word "deflation" is derived from the Latin prefix "de-", meaning "away" or "down," and the stem "flāre," meaning "to blow."

Meaning

Deflation refers to a decrease in the general price level of goods and services in an economy over a period of time. This means that the purchasing power of money increases, since the same amount of money can purchase more goods and services.

Origin

The term "deflation" was first used in the early 19th century by economists to describe periods of general price declines in the British economy. The term became more widely used in the 20th century, particularly during the Great Depression, when many countries experienced severe deflation.

Causes of Deflation

Deflation can occur for various reasons, including:

• Reduced demand: When people and businesses spend less, prices tend to decline as suppliers compete to sell their products or services.
• Increased supply: If the supply of goods and services exceeds demand, prices can fall as sellers try to reduce inventory.
• Falling costs of production: Technological advancements or other factors can lead to a reduction in the costs of producing goods and services, resulting in lower prices.
• Monetary policy: Governments and central banks can tighten monetary policy by raising interest rates or reducing the money supply, which can lead to deflation by discouraging borrowing and spending.

deflation relate terms

• deflate

  Etymology From the Latin word deflatus meaning blown down or collapsed which is

• inflate

  Etymology The word inflate originates from the Latin verb inflare meaning to blow int

• inflation

  Etymology Inflation derives from the Latin word inflatio genitive inflationis mea

• inflation

  Etymology Inflation derives from the Latin word inflatio genitive inflationis mea

• decrease

  Etymology Middle English decressen from Old French decroistre from Late Latin decr

• introduce

  Etymology The Study of Word Origins Etymology is a branch of linguistics that investigat

• reduction

  Etymology Reduction is derived from the Latin verb reducere which means to lead ba

• diminution

  Etymology Old French diminucion Medieval Latin diminutio Latin dēminūtiō Meanin

• myriad

  Etymology The word myriad comes from the Latin word myrias which in turn derives fr

• haggard

  Etymology Early 17th century probably from dialectal hag to cut hack tire Mea

• respect

  Etymology The word respect derives from the Latin word respectus meaning a lookin

• pool

  Etymology The word pool originates from the Middle English word pol which is derive