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reflation
[ ri-fley-shuhn ]
noun
- restoration of economic activity, consumer prices, etc., to higher levels by manipulating monetary policy.
reflation
/ riːˈfleɪʃən /
noun
- an increase in economic activity
- an increase in the supply of money and credit designed to cause such an increase
Other Words From
- re·fla·tion·ar·y [ri-, fley, -sh, uh, -ner-ee], adjective
Word History and Origins
Origin of reflation1
Word History and Origins
Origin of reflation1
Example Sentences
"We see this as a key step in Beijing's reflation efforts... It is a positive surprise for the market given the fading hopes on easing since mid-August," Morgan Stanley analysts said in a client note.
Haefele added that the main driver of the markets in the second half of 2022 will be investor perceptions of whether we are headed for stagflation, reflation, a soft-landing, or a slump.
Such an increase could stoke speculation that global inflation will prove longer-lasting than first hoped and hasten the end of super-cheap money, favouring reflation trades in bank and energy stocks while bruising bond prices.
The move may herald a nascent comeback for the so-called reflation trade, a bet on rebounding economic growth that saw value stocks surge starting late last year alongside Treasury yields.
Haefele is betting on the reflation trade - trades that outperform during periods of quick economic growth - as the world works through the Delta variant of the coronavirus.
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