Disinflation
Disinflation is a decrease in the rate of inflation. It is a process of slowing down the rate of increase in the general price level of goods and services in an economy. It is the opposite of inflation, which is an increase in the rate of price level. Disinflation is a milder form of deflation, which is a decrease in the general price level.
History of Disinflation
The concept of disinflation was first introduced by the economist Irving Fisher in the 1920s. He used the term to describe a decrease in the rate of inflation, as opposed to deflation, which is a decrease in the general price level. Since then, the term has been widely used in economics and finance to describe a decrease in the rate of inflation.
Comparison Table
| Term | Definition |
|---|---|
| Inflation | An increase in the general price level of goods and services in an economy. |
| Disinflation | A decrease in the rate of inflation. |
| Deflation | A decrease in the general price level. |
Summary
Disinflation is a decrease in the rate of inflation. It is a milder form of deflation, which is a decrease in the general price level. The concept of disinflation was first introduced by the economist Irving Fisher in the 1920s. For more information about disinflation, you can visit websites such as Investopedia, The Balance, and the Federal Reserve Bank of St. Louis.
See Also
- Inflation
- Deflation
- Monetary Policy
- Interest Rates
- Consumer Price Index
- Gross Domestic Product
- Supply and Demand
- Cost of Living
- Economic Growth
- Economic Cycle
