Glossary›Macroeconomics Deflation DefinitionA sustained fall in the overall price level. Sounds good for buyers, but it raises real debt, encourages spending delay, and can spiral into recession. ExampleJapan experienced bouts of deflation for much of the 1990s and 2000s. Related termsRecessionIrving FisherDemand ShockDemographic DividendDepressionEndogenous GrowthGDP (Gross Domestic Product)GDP Deflator ← All terms
