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• n  (geology) the erosion of soil as a consequence of sand and dust and loose rocks being removed by the wind
  a constant deflation of the desert landscape
• n  a contraction of economic activity resulting in a decline of prices
• n  the act of letting the air out of something

• Commodity prices fell by a record amount in October, stoking fears of deflation.
• Bundesbank president Ernst Welteke insists that deflation fears are exaggerated.
• Just when you thought the economic news out of China couldn't get much worse (see any number of previous posts including Austin's last), along comes a new threat: deflation.

• disinflation
• inflation

News & Articles

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• BoJ Minutes: Economy Beginning To Recover
  The members of the Bank of Japan's monetary policy board said that the Japanese economy had finally started to move to the upside, minutes from the board's meeting on May 21 and 22 revealed on Friday. On the matter of ending the deflation that has plagued Japan for more than 15 years, some of the board members admitted that it could be difficult to attain the bank's new CPI target of 2 percent.
  June 14, 2013 - RTT News
• Japan’s Abenomics Is Topic for G-8 Leaders, German Official Says
  Japan’s effort to fight deflation and spur growth will be a topic at next week’s Group of Eight summit as leaders debate divergent policies in the world’s biggest economies, a German government official said.
  June 13, 2013 - Bloomberg
• Asahi to Ajinomoto CEOs Betting Abenomics Won’t Spur Inflation
  Sixth months into an economic program that sparked faster growth and the world’s biggest stocks rally this year, consumer goods companies are still planning for deflation.
  June 13, 2013 - Bloomberg

Quotes

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• Manmohan Singh in Reuters
  But right now, the danger of deflation in the global economy is, in my view, much greater than the danger of inflation,he said.
• David Dillon in ABC News
  In the near term, our financial results are being pressured by factors including persistent deflation, unusually intense competition and the cautious mind-set of customers,Chief Executive David Dillon said in a statement.
• Thomas Jefferson in HeraldNet
  In 1802 he said: "I believe that banking institutions are more dangerous to our liberties that standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...