Business Dictionary :

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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)

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