Sentences with phrase «deflationary effect»
The phrase "deflationary effect" refers to a situation where the overall prices of goods and services in an economy decrease over time. It means that things become cheaper, which may seem good for consumers, but it can have negative consequences for the economy as a whole, like reduced spending, declining profits, and unemployment. Full definition
The more credit creation takes the form of inflating asset prices — rather than financing purchases of goods and services or direct investment employing labor — the more deflationary its effects are on the «real» economy of production and consumption.
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By downplaying the euro's strength, they suggested any potential deflationary effects caused by the rise in the single currency are likely to be limited, barring an outsized further appreciation.
All to suspend the deflationary effects that followed the bursting of a cheap credit induced asset bubble that popped nearly 30 years ago.
Free - ish Trade — Trade isn't really free, but many nations are more willing to compete globally, and the deflationary effects of that competition have been a real benefit.
This is leading to inflation in China, Australia, and many other places, as the deflationary effects of adding new labor to the global capitalist labor pool gets outweighed by the hyperactive printing press.
Core inflation continues to be near the 2.0 % target as the past decline in the Canadian dollar puts upward pressure on imported products, which has been largely offset by the deflationary effect of excess capacity.
In the spring of 1931, the Federal Reserve began to expand the monetary base, but the expansion was insufficient to offset the deflationary effects of the banking crises.