reflate
/riːˈfleɪt
/verb [with object]
Expand the level of output of (an economy) by government stimulus, using either fiscal or monetary policy: Western states pressured Schmidt to reflate the West German economy faster [no object]: countries are often unwilling to reflate on their own...
- This leaves the ‘old school economic policies’ of dollar devaluation and deficit financing to help reflate the economy and fend off deflation and boost exporters.
- Also, the return to a zero interest rate policy by the Bank of Japan signals its intent to reflate the economy.
- The big risk for bonds is that the Fed's efforts to reflate the economy will prove all too successful, leading to an eventual surge in inflation.
Derivatives
reflation
/ noun ...- If Japan ultimately does get serious about aggressive monetary reflation, it appears to us that an extremely cheap yen policy is the inevitable by-product.
- Malaysia turned to capital controls, whilst embarking on an aggressive policy of monetary reflation.
- Can the recession and the deflationary trend be corrected by massive reflation?
reflationary
/ adjective ...- The editorial repeated calls for a reflationary monetary policy coupled with a fiscal program to rein in government deficits.
- With interest rate cuts and a reflationary budget, shares in the sector could have further to go, provided the British economy is not dragged down by the problems in the US.
- And while the stock market wallows in today's reflationary environment, we'll stick with our view that what is unfolding is not favorable for U.S. financial assets generally.
Origin
1930s: from re- 'again', on the pattern of inflate, deflate.