deflationn. 1. the act or process of deflating.
2. a fall in the average prices of goods and services; -- usually associated with contraction of economic activity. Opposite of
3. the reduction of available credit or a contraction of economic activity resulting from or associated with a decline of prices.
4. the act of letting the air out of something.
(Geol.) the erosion of land structures such as sand or soil due to the action of wind.
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