Encyclopedia of Early Modern History Online

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Deflation
(935 words)

In contrast to inflation, deflation means an enduring sinking of the general price level, which corresponds with a rise in monetary value and thus with an increase in buying power. Deflation mainly occurs in connection with an economic depression, that is, with a cumulative downward movement in overall economic activity. Deflationary tendencies are less common than inflationary tendencies. The real economic effect of deflation is a drop in production and employment. In addition, creditors benefit f…

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Metz, Rainer, “Deflation”, in: Encyclopedia of Early Modern History Online, Editors of the English edition: Graeme Dunphy, Andrew Gow. Original German Edition: Enzyklopädie der Neuzeit. Im Auftrag des Kulturwissenschaftlichen Instituts (Essen) und in Verbindung mit den Fachherausgebern herausgegeben von Friedrich Jaeger. Copyright © J.B. Metzlersche Verlagsbuchhandlung und Carl Ernst Poeschel Verlag GmbH 2005–2012. Consulted online on 26 August 2019 <http://dx.doi.org/10.1163/2352-0272_emho_SIM_018197>
First published online: 2015
First print edition: 20170626



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