Disinflate

/ˌdɪsɪnˈfleɪt/ verb

Definition

To reduce inflation in an economy by controlling the money supply or slowing economic growth.

Etymology

From dis- (remove or reduce) + inflate (from in- + flate, to blow). This economic term emerged in the 20th century.

Kelly Says

When central banks try to disinflate an overheated economy, they make money harder to borrow, which can slow everything down including job creation!

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