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Deflation

A reduction in the amount of money in circulation. Such a reduction, ceteris paribus, can drive down prices. A drop in prices, called price deflation, can also occur due to an increase in productivity or in increase in demand for money

Related Publications

ARCHIVE

New Worry: Deflation

NOVEMBER 21, 2008

With the stock market crumbling and the economy shrinking, a whiff of deflation is in the air.... But economists warn that sustained deflation -- a period of falling overall prices -- would deepen the nation's economic troubles. (Washington Post, Friday)

When will we realize that money is too important to be trusted to government?

FEE Timely Classic
The Dreaded D Word by Christopher Mayer

Related Freeman Articles

IN BRIEF

Deflation Fears Emerge

JANUARY 09, 2012

ARTICLE

Are We Headed for Deflation – or Inflation?

Keynesians versus Austrians.

SEPTEMBER 15, 2010 by WILLIAM L. ANDERSON

The inflation wolf may well be at the door, but we need to do a better job of explaining why the current situation exists.

OUR ECONOMIC PAST

The History of Deflation

Deflation Is Not Such a Bad Thing

MARCH 01, 2003 by STEPHEN DAVIES

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September 2014

For centuries, hierarchical models dominated human organizations. Kings, warlords, and emperors could rally groups--but also oppress them. Non-hierarchical forms of organization, though, are increasingly defining our lives. It's no secret how this shift has benefited out social lives, including dating, and it's becoming more commonplace even in the corporate world. But it has also now come even to organizations bent on domination rather than human flourishing, as the Islamic State shows. If even destructive groups rely on this form of entrepreneurial organization, then hierarchy's time could truly be coming to an end.
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