disinflation
/ˌdɪs.ɪnˈfleɪ.ʃən/
Definition
A long-term, structural slowing or reduction in the general price level of goods and services throughout an economy caused by increased productivity.
Etymology
The word is formed by combining the prefix 'dis-' (denoting removal or reversal) with 'inflation.' It entered economic usage in the 20th century to specifically describe the process of slowing down the rate of rising prices without necessarily causing a full-scale contraction.
In the news
In this article, the authors argue that AI acts as a powerful source of disinflation by allowing firms to lower prices as they pass on productivity gains to consumers. They emphasize that this downward pressure on prices is a structural supply-side effect rather than a temporary cyclical trend.
What Economists Are Missing About AI
Read the full article ↗promarket.org