deflationary spiral

Finance

(noun)

A deflationary spiral is a situation where decreases in price lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in price. Since reductions in general price level are called deflation, a deflationary spiral is when reductions in price lead to a vicious circle, where a problem exacerbates its own cause.

Related Terms

Economics

(noun)

A situation where decreases in price lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in price.

Related Terms

Examples of deflationary spiral in the following topics:

  • Deflation

    • Economists generally believe that deflation is a problem in a modern economy because they believe it may lead to a deflationary spiral .
    • This is the deflationary spiral.

  • Deflation

    • This cycle of continuing inflation is called a deflationary spiral.

  • The Functions of Money

    • It can replace money as the method of exchange in times of monetary crisis, such as when a the currency is either unstable (e.g. hyperinflation or deflationary spiral) or simply unavailable for conducting commerce.

  • Limitations of Monetary Policy

    • Deflation is a problem in a modern economy because it increases the real value of debt and may aggravate recessions and lead to a deflationary spiral.

  • Other Curves in Polar Coordinates

    • Archimedes’ spiral is named for its discoverer, the Greek mathematician Archimedes ($c. 287 BCE - c. 212 BCE$), who is credited with numerous discoveries in the fields of geometry and mechanics.
    • The formula that generates the graph of the Archimedes’ spiral is given by:
    • As $\theta$ increases, $r$ increases at a constant rate in an ever-widening, never-ending, spiraling path.
    • The formula that generates the graph of a spiral is $r=θ$ for $θ≥0$.

  • Campylobacter

    • Campylobacter (meaning 'twisted bacteria') is a genus of bacteria that are Gram-negative, spiral, and microaerophilic.
    • Campylobacter is a genus of bacteria that are Gram-negative, spiral, and microaerophilic.
    • The name means "twisted bacteria" because of the spiral formation; motile, with either unipolar or bipolar flagella, the organisms have a characteristic spiral/corkscrew appearance and are oxidase-positive.
    • This scanning electron microscope image shows the characteristic spiral, or corkscrew, shape of C. jejuni cells and related structures.

  • Spirochaetes

    • Spirochaetes are characterized by the presence of a double-membrane and long, spiral-shaped cells that are chemoheterotrophic.
    • The spirochaetes belong to a phylum of distinctive double-membrane bacteria that are characterized by their long, spiral-shaped cells.

  • Hardware and Software Improvements

    • Another example is the spiral model .
    • The key characteristic of a spiral model is risk management at regular stages in the development cycle.
    • The spiral model emphasizes risk analysis, and thus requires customers to accept this analysis and act on it.
    • Software developers have to actively look for possible risks, and analyze it accurately for the spiral model to work.
    • A diagram laying out the steps in the spiral model of software development.

  • Leaf Structure and Arrangment

    • Leaves are classified as either alternate, spiral, opposite, or whorled.
    • Plants that have only one leaf per node have leaves that are said to be either alternate or spiral.
    • Alternate leaves alternate on each side of the stem in a flat plane, and spiral leaves are arranged in a spiral along the stem.

  • Vertical Structure

    • so for the disk to remain thin, most of the gravitational energy that is released as the material spirals down must be emitted.
    • We know the accretion rate but the disk could be of relatively low mass with material spiraling in quickly or of higher mass with material slowly spiraling in.