Phrases with «deflationary environment»

A deflationary environment refers to a situation where the general prices of goods and services in an economy are consistently falling over time. This can happen when there is a decrease in the overall demand for goods or when there is an increase in the supply of goods without a corresponding increase in demand. Deflation can have negative effects on the economy, such as reducing consumer spending, increasing the burden of debt, and causing businesses to cut their prices and profits. Full definition

Sentences with «deflationary environment»

  • For example, fixed - income securities, defensive stocks and blue - chip companies paying dividends can afford protection in deflationary environments. (canadianbusiness.com)
  • This development coincided with an unprecedented cut in the federal funds rate to near - zero, but these policies have not spurred inflation because of a prevailing deflationary environment. (investopedia.com)
  • There are many, complex reasons why QE didn't lead to inflation or hyperinflation, though the simplest explanation is that the recession was a strong deflationary environment, and quantitative easing ameliorated its effects. (investopedia.com)
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