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Reflation

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Reflation
An economic policy whereby a government uses fiscal or monetary stimulus in order to expand a country's output.
    
It refers to an economic policy whereby a government uses fiscal or monetary stimulus in order to expand a country's output. It can be done by reducing Tax, changing the Money Supply, or even adjusting Interest rates. Earlier it was used to describe a recovery of price to a previous desirable level after a fall caused by a Recession. Today it also describes the first phase in the recovery of an economy with increasing demand from a slump.
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