Debt-deflation theory (债务-通货紧缩理论)

Debt-deflation theory (债务-通货紧缩理论 zhàiwù-tōnghuò jǐnsuō lǐlùn) refers to a macroeconomic concept proposes that excessive will cause borrowers experiencing a decrease in the real value of properties, goods, or services. By repaying the debt, consumers gradually lose purchasing power, and lower demand leads to a fall in the price level.

  • 债务 (zhàiwù) derives from

 (zhài) as in paying back debt (还债 huánzhài), creditors (债主 zhàizhǔ) or creditor’s right (债权 zhàiquán).

 (wù) as in affair (事务 shìwù) or work (工务 gōngwù).

  • 通货 (tōnghuò) derives from

 (tōng) as in circulation (流通 liútōng), passing through (通过 tōngguò) or smooth (通顺 tōngshùn).

 (huò) as in commodity or goods (货品 huòpǐn), money (通货 tōnghuò). The underlying radical is  (bei), which contains the meaning of money.

Debt-deflation theory (债务-通货紧缩理论 zhàiwù-tōnghuò jǐnsuō lǐlùn) word examples:

  1. Debt-deflation theory of great depressions (大萧条的债务-通货紧缩理论 dàxiāotiáodē zhàiwù-tōnghuò jǐnsuō lǐlùn).
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