Daily Point 2049 - Reflation

 

The Banking Tutor

Daily Point 2049

Reflation 

Reflation is stimulating the economy by producing inflation. It is done by increasing money supply or by reducing taxes. The reflationary exercise is often made by the government and the central bank is done to bring back the economy from recession. In effect, reflation is the opposite of disinflation. 

Sekhar Pariti

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