"Debt deflation" refers to a situation where an economy experiences a decrease in prices, leading to a fall in overall spending and increased burden of debt. It can create a cycle where falling prices make debt harder to pay off, which in turn leads to less spending and further price declines.
Full definition
Synonyms for individual words can be found below.
«debt»
«deflation»
Sentences with «debt deflation»
- In all these cases the effect of debt deflation extracting interest is not only on spending — and hence on current prices — but on the economy's long - term ability to produce, by eating into natural resources and the environment as well as society's manmade capital stock. (michael-hudson.com)
- So in order to save bondholders and banks from losing, the economy would be wrecked by debt deflation. (michael-hudson.com)
- Keeping them on the books will handcuff the economy and cause debt deflation by diverting income to pay debt service rather than to spend on goods and services. (michael-hudson.com)
- (see all
sentences)