Deflation is the opposite of inflation. In the words of Prof. Crowther,”deflation is the state of the economy where the value of money is rising or the prices are falling”. 

This definition is not free from defects. From this definition, it appears that every fall in the price-level is deflation but actually this may not be so. Sometimes the price-level starts falling down without any contraction in the supply of money. Now such a fall in the price-level cannot be called deflation.

Note: This is published for the internal use (of St. Philomena's College students) only and hence requires verification. 
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