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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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April 2014

Around the world, people are struggling to throw off authoritarianism, with deeply mixed results. From Egypt to Venezuela, determined people build networks to overthrow their regimes, but as yet we have not learned to live without Leviathan. In this issue, Michael Malice and Gary Dudney discuss their glimpses inside totalitarian regimes, while Sarah Skwire and Michael Nolan look at how totalitarian regimes grind down the individual--and how individuals fight back. Plus, Jeffrey Tucker identifies a strain in libertarianism that, left unchecked, could reduce even our vibrant movement to something that is analogous to the grim aesthetic of architectural brutalism. The struggle for our lives and freedom is a struggle for beauty; it begins inside each of us.
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