A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Dark Horse
DCCC
Debate
Debt Limit
Debt Retirement
Defendant
Deficit
Deficit Spending
Deflation
Delegate
Democracy
Democratic Party
Depression
Discretionary Spending
Disenfranchised
Dismissal
Dissenting Opinion
Distributive Justice
District Attorney
Diversity
Divided Government
Dividend
Double Giving
Double Jeopardy
DSCC
DSCC
Due Process
Deflation

Falling prices across the entire economy is deflation. A fall in prices in one sector of the economy does not count as deflation. It’s not necessarily bad; deflation might, for example, be the result of increased productivity that can lead to greater purchasing power. But when deflation is the result of decreased demand and excess capacity, it can lead to recession and even depression. Because consumers expect prices to be lower, they delay making purchases, leading to greater excess capacity and continued falling prices. Deflation also increases the real value of debt, leading to bankruptcy and bank failures.