from Wiktionary, Creative Commons Attribution/Share-Alike License
- v. To reinflate, to inflate again.
- v. To restore the general level of prices to a previous or desirable level.
from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.
- v. economics: experience reflation
- v. become inflated again
- v. economics: raise demand, expand the money supply, or raise prices, after a period of deflation
- v. inflate again
If so, it doesn't follow that it would now be desirable for the Fed to "reflate" simply to make life easier for those who made leveraged bets on flipping condos (or gold coins) to some greater fool who failed to showed up after higher interest rates on cash made it more attractive at the margin to hold more cash.
The explanation for this anomaly is that the Fed's $4.6 trillion added by quantitative easing fell far short of the estimated $10 trillion needed to "reflate" the money supply after the "shadow lenders" disappeared.
Governments have tried to "reflate" their flagging economies by throwing budget-crippling sums at the banks, but the banks have not deigned to pass those funds on to businesses and consumers as loans.
In addition, ruinous inflation for the people is then the answer to "reflate" the economy and save the big bank owners of the Fed.
In combination with other Federal Reserve and Treasury programs, the plan may "reflate" the U.S. financial system, economy and, indeed, the stock market.
Metals and mining stocks continued their resurgence on hopes the government could "reflate" the economy.
The Fed can't "reflate," i.e., print money, because it is attempting to target interest rates (the price of money) via the setting of the fed funds rate.
Confidence in the Fed's capacity to cut rates, manipulate market behavior, and "reflate"/"reliquefy" has never been as unyielding as it today.
With the benefit of hindsight, one of the main conclusions from this paper was that as inflation and interest rates approach zero and the risk of deflation is high, the monetary and fiscal authorities must go beyond what most conventional models would suggest in order to "reflate" the economy.
The goals are to "reflate" everything, save the system, and create jobs.
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