The act of stimulating the economy by increasing the money supply or by reducing taxes. The opposite of deflation.
Example Usage of Reflation
financialsamura: Ahhh, another up day in the Asian markets! Let the global Reflation trade continue.
StephenBove: Gold true value in face of a Reflation of $50 Trillion in global assets held by the richest: $1400 (a doubling of Global M3 from mid 2007)
Contrahour: $SPY Reflation is working but will turn into inflation if not contained. "Low value of the dollar driving commodity costs higher"