However, if the rate of gold mining cannot keep up with the growth of the economy, gold becomes relatively more valuable, and prices (denominated in gold) will drop, causing deflation.

ONLY a decrease in the amount of currency in the economy will cause deflation.

But the real problem is that Japan suffers from insufficient domestic spending, causing deflation.

This causes deflation to accelerate.

Still, Mr. Angell maintains that excessive money supply growth remains the essential ingredient of inflation, while too little money growth causes deflation.

Osbourne's main aim seems to be to limit the amount of currency in circulation following QE, and to cause deflation.

The report provided more evidence, economists said, that the weak growth was unlikely to cause deflation, a sustained decline in prices of the sort that has recently afflicted Japan.

This is a concern which, if carried to the extreme, could cause deflation and unemployment.

I have always been in favour of making these efforts, but they have tended to cause deflation.

The hypothesis predicts that an overly large debt to GDP ratio can cause deflation and depression.