deflationary spiral


Also found in: Dictionary, Wikipedia.
Related to deflationary spiral: inflationary spiral
Graphic Thesaurus  🔍
Display ON
Animation ON
Legend
Synonym
Antonym
Related
  • noun

Antonyms for deflationary spiral

an episode of deflation in which prices and wages decrease at an increasing rate and currency gains in value

Related Words

References in periodicals archive ?
Ohara said that the move is needed to prevent the domestic economy from falling into a deflationary spiral.
Bank of Japan (BOJ) Governor Toshihiko Fukui told the Diet on Tuesday that the central bank decided to raise its purchase of stocks held by banks because of a risk that Japan's economy will fall into a deflationary spiral.
The central bank has employed the quantitative monetary easing policy since March 2001 to avoid the so-called deflationary spiral -- a vicious circle in which price falls transform into a reduction in corporate profits which depress economic activity and accelerate price falls.
NCP chief Takeshi Noda said Koizumi should have presented concrete reform policies in his address and affirmed the government is fighting a deflationary spiral.
In the Eurozone, core inflation has fallen back sharply over the last 12 months and Germany, with underlying inflation running below 1pc, was highlighted in a recent report as being in particular danger of falling into a deflationary spiral.
To overcome the current economic difficulties, while avoiding the risk of falling into deflationary spiral, they agreed that it is imperative for the Asian countries to take stimulus measures to put their economy on the path of recovery and sustainable growth," the statement said.
The BOJ adopted the quantitative easing policy in March 2001 in an attempt to rescue the Japanese economy from a deflationary spiral and restore stability in the financial system.
Artificially low rates appear to have had the desired effect of avoiding a deflationary spiral and restoring stability to the world's financial markets.
Nakahara also suggested the BOJ introduce a price level target, claiming the economy is in the ''early stages of a deflationary spiral,'' the BOJ minutes said.
Economist Marie-Pierre Ripert at Natixis said: "Both these measures are clearly a significant step in the action implemented by the Fed in trying to avoid a deeper recession and to prevent the economy to fall in a deflationary spiral.
The BOJ began the quantitative easing policy in March 2001 in an attempt to prevent a deflationary spiral and to restore stability in the financial system.
The government would, therefore, like to ask the bank to (a) stop the continuous price falls and stabilize prices by devising additional monetary policy measures, and (b) consider a variety of options and take drastic measures to prevent the economy from sliding into a deflationary spiral,'' the minutes said.
As BOJ officials define it, a deflationary spiral is more than just falling prices; it is a crisis in which price deflation and shrinking demand keep feeding each other.
He also said the Japanese economy is not about to fall into a deflationary spiral under which price falls and economic contraction take place simultaneously.
The BOJ started the current monetary policy in March 2001 to rescue the Japanese economy from a deflationary spiral and restore stability in the financial system.