Unreferenced date December 2008 Reflation is the act of economic stimulus stimulating the economy by increasing the money supply or by reducing taxes , seeking to bring the economy specifically price level back up to the long term trend, following a dip in the business cycle . It is the opposite of disinflation , which seeks to return the economy back down to the long term trend. Reflation, which can be considered a form of inflation increase in the price level , is contrasted with inflation narrowly speaking in that bad inflation is inflation above the long term trend line, while reflation is a recovery of the price level when it has fallen below the trend line. For example, if inflation had been running at a 3 rate, but for one year it falls to 0 , the following year would need 6 inflation actually 6.09 due to compounding to catch back up to the long term trend. This higher than normal inflation is considered reflation, since it is a return to trend, not exceeding the long term trend. This distinction is predicated on a theory of economic growth where there is long term growth in the economy and price level, which is widely accepted in economics. Just as disinflation is considered an acceptable antidote to high inflation, reflation is considered to be an antidote to deflation which, unlike inflation, is considered bad regardless of its magnitude . Policy see Economic stimulus It can refer to an economic policy whereby a government uses fiscal or monetary stimulus in order to expand a country s output. This can possibly be achieved by methods that include reducing tax, changing the money supply, or even adjusting interest rate s. Originally it was used to describe a recovery of price to a previous desirable level after a fall caused by a recession. Today it also in addition to the above describes the first phase in the recovery of an economy which is beginning to experience ... Category Inflation Category Economic bubbles Category Macroeconomics macroeconomics stub de Reflation ... more details
business cycle theory . Solutions Fisher viewed the solution to debt deflation as reflation ... would break the vicious spiral of debt deflation. In the absence of reflation, he predicted an end ..., and then maintaining that level unchanged. Later commentators do not in general believe that reflation ... more details
Unreferenced date June 2009 Thaksinomics a portmanteau of Thaksin Shinawatra Thaksin and economics is a term used to refer to the economics economic set of policies of Thaksin Shinawatra , Prime Minister of Thailand from 2001 2006. There has been considerable controversy over the role Thaksinomics has played in Thailand s recovery from the 1997 Asian financial crisis . Among the most prominent advocates of Thaksin s economic policies is Morgan Stanley economist, Daniel Lian . The term was coined by President Gloria Macapagal Arroyo of the Philippines during the 2003 Nikkei in which she explained how she conducted her economic policy by following Thaksin s domestic consumption based and managed asset reflation . http www.news.ops.gov.ph archives2003 sept08.htm Prime Overview Thaksinomics is a populism populist set of economic policies aimed at Thailand s rural people, who make up the majority of the country s population. The policies of Thaksinomics have included A four year debt moratorium for farmers, combined with orders to Thailand s state owned banks to increase loans to farmers, villages and Small and Medium sized Enterprise SMEs small and medium size enterprises at low interest rates. subsidy Subsidized transportation vehicle fuel prices, starting January 2004 in order to alleviate the impact of Oil price increases since 2003 rising world oil prices on consumers. The government has also forced the state owned electricity company EGAT to partially subsidize electricity tariffs. In the policy of public health, Thaksin started the 30 Baht universal healthcare program, which guarantees universal healthcare coverage for just 30 Baht about 0.75 USD a visit at state hospitals. Although highly popular, especially among lower income Thais who were previously denied healthcare because of their income, the policy was strongly criticized by physicians. The One Tambon One Product OTOP program, which stimulates the development of rural Small and Medium sized Enterprise smal ... more details
Distinguish Deflation File Disinflation graph.png thumb right Disinflation is a decrease in the rate of inflation a slowdown in the rate of increase of the general price index price level of goods and services in a nation s gross domestic product over time. It is the opposite of reflation . Disinflation occurs when the increase in the consumer price level slows down from the previous period when the prices were rising. Disinflation is the reduction in the general price level in the economy but for a very short period of time. Disinflation takes place only when an economy is suffering from recession. If the inflation rate is not very high to start with, disinflation can lead to deflation decreases in the general price index price level of goods and services. For example if the annual inflation rate for the month of January is 5 and it is 4 in the month of February, the prices disinflated by 1 but are still increasing at a 4 annual rate. Again if the current rate is 1 and it is 2 for the following month, prices disinflated by 3 i.e. 1 2 and are decreasing at a 2 annual rate. Causes There is widespread mainstream economics consensus among economists that inflation is caused by increases in the money supply supply of money available for use in a nation s economy. Inflation can also occur when the economy overheats because of excess aggregate demand this is called demand pull inflation . The causes of disinflation are the opposite, either a decrease in the growth rate of the money supply, or a business cycle contraction recession .If the central bank of a country enacts tighter monetary policy, that is to say,the government start selling its securities,this reduces the supply of money in an economy.This contraction of the monetary policy is known as Federal Reserve System quantitative tightening technique. When the government sell its securities in the market, the supply of money reduces and money becomes more upscale and the demand for money remains constant.During a re ... more details
have also called attention to the positive effects from expectations of reflation and rising nominal ... ref One contributing policy that reversed reflation was the Banking Act of 1935, which effectively ... more details
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