In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the value of currency over time, but sudden deflation increases it. This allows more goods and services to be bought than before with the same amount of currency. Deflation is distinct from disinflation, a slow-down in the inflation rate, i.e. when inflation declines to a lower rate but is still positive.Economists generally believe that a sudden deflationary shock is a problem in a modern economy because it increases the real …



City of Boston, Massachusetts · 16 June 2024 English

In 2023, Boston continued its recovery from the COVID-19 pandemic, showing signs of both resiliency and settling into a post-pandemic “new normal”. Inflation in the seasonally unadjusted Consumer Price Index …

while energy in Boston Metro saw a significant deflation (-13.8%), compared to a smaller decline nationally Boston’s reduction was heavily impacted by a 20.4% deflation in electricity prices. Boston saw a 46.4% increase

IGIDR: Indira Gandhi Institute of Development Research · 15 June 2024 English

Hawtrey is now remembered by the majority of our profession, if not as the originator, certainly as the chief proponent of the monetary theory of the trade cycle. [...] The …

found themselves squeezed by disinflation or deflation, which has required them to pay their debts in

NBER: National Bureau of Economic Research · 31 May 2024 English

We develop a simple menu-cost model with non-constant elasticity of demand that features idiosyncratic productivity and demand shocks. The model is calibrated to match firm-level productivity and demand processes estimated …

and Mathias Trabandt, “Resolving the Missing Deflation Puzzle,” Journal of Monetary Economics, 2022,

CEIP: Carnegie Endowment for International Peace · 30 May 2024 English

China’s slowing growth will increasingly impact its economic relations with Africa. Policy directions within African countries and third parties such as the United States will greatly shape how these changes …

economic-hangover/; and William Pesek, “China’s Deflation Could Go Global, Fast,” Barron’s, March 13, 2024 2024, https://www.barrons. com/articles/china-deflation-global-economy-trade-war-3029367e. 2 “Outline

NBER: National Bureau of Economic Research · 30 May 2024 English

This paper adds life-cycle features to a New Keynesian model and shows how this places financial wealth at the center of consumption/saving decisions, thereby enriching the determinants of aggregate demand …

PCE; the wealth series has code TABSHNO. Price deflation is done using the CPI (CPIAUCSL), while per-capita

IADB: Inter-American Development Bank · 29 May 2024 English

Caribbean economies are experiencing continued growth into 2024 as the severe economic and social stress of the COVID-19 pandemic has receded. Meanwhile, global economic conditions may be diverging. For Caribbean …

inflation in the last six months was driven by deflation within the transport sector, particularly the

WFP: World Food Programme · 28 May 2024 English

The operational assistance update report monitors the distribution and redemption of assistance using various means to ensure beneficiaries have safe and dignified access to their assistance.

with December retargeting. Unfortunately, a deflation has been observed in purchasing patterns since

IMF: International Monetary Fund · 24 May 2024 English

Georgia’s economic performance remains robust. Growth has moderated from double digits but remains high, inflation is low, and fiscal and financial buffers are healthy. EU candidate status has boosted sentiment, …

could be normalized more quickly to counter deflation risks. It is important to use the policy rate

IMF: International Monetary Fund · 24 May 2024 English

Using a comprehensive drought measure and a panel autoregressive distributed lag model, the paper finds that worsening drought conditions can result in long-term scarring of real GDP per capita growth …

winsorized to exclude extreme inflation and deflation (above 100 percent). Investment growth Log difference

IMF: International Monetary Fund · 24 May 2024 English

Selected Issues

0 percent in February 2024 after a period of deflation (Figure 6). These goods represent about 25 percent

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