# Deflation

*Macro & Economy — Finicade finance glossary*

Falling prices across the economy — the opposite of inflation, and often more dangerous. When people expect things to get cheaper, they delay spending, which slows the economy further in a hard-to-break spiral.

**Also known as:** deflation and the 2 target

**Related terms:** [Inflation](https://finicade.com/glossary/inflation), [Monetary Policy](https://finicade.com/glossary/monetary-policy), [Recession](https://finicade.com/glossary/recession)

**Taught in:** Macro & Markets — Inflation: The Price of Everything

Source: https://finicade.com/glossary/deflation