Reduction in the rate of inflation.
- More than a decade of inflation and disinflation followed in the major developed countries and many developing countries.
- In the transition economies, the early peggers - Czechoslovakia, Estonia, Hungary, Poland, and Slovakia - performed much better than the floaters, both in terms of the rate and cost of disinflation.
- Second, even if this opportunity had been missed, subsequent losses could have been reduced if recapitalization had been sought when disinflation sharply lowered interest rates in 1982-1983.
- Example sentences
- After all, interest rate setting has its ambiguities too - do lower rates imply expansionary policy or simply a validation of disinflationary pressures?
- Further efforts to deregulate and privatize would help; but increased regulation and government ownership of productive resources could undermine, and even reverse, the disinflationary process.
- While I judge this to be an unlikely outcome, the current behavior of consumers would be consistent with creating a dynamic that supports disinflationary trends in the economy.
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