1891, "release of air," noun of action from deflate (q.v.). In reference to currency or economic situations, from 1916. Related: Deflationary.
Entries linking to deflation
deflate v.
1891, in reference to balloons, a coinage (with de-) based on inflate (q.v.). Latin deflare meant "to blow away," but in the English word the prefix has the sense of "down." Related: Deflated; deflating.