noun, plural democracies. 1. government by the people; a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system.
Debt deflation is a theory of economic cycles that holds that recessions and depressions are due to the overall level of debt shrinking : the credit cycle is the cause of the economic cycle.The theory was developed by Irving Fisher following the Wall Street Crash of 1929 and the ensuing Great Depression.The debt deflation theory was familiar to John Maynard Keynes prior to Fisher's discussion of it, but he found it lacking in comparison to what would become his theory of liquidity ...
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). This should not be confused with disinflation, a slow-down in the inflation rate (i.e., when inflation declines to lower levels).Inflation reduces the real value of money over time; conversely, deflation increases the real value of money â the currency of a national or regional economy. Growth deflation: an enduring decrease in the real cost of goods and services as the result of technological progress, accompanied by competitive price cuts, resulting in an increase in aggregate demand.