deflation; currency contraction
Finance term for a reduction in the money supply, often leading to deflation. More specific than general deflation (デフレ).
The central bank implemented a currency contraction policy.
通貨縮小は物価下落を招くことがある。
Currency contraction can lead to falling prices.
デフレ (deflation) refers to the general decline in prices, while 通貨縮小 specifically means a reduction in the money supply, which is often a cause of deflation.
インフレ (inflation) is the opposite phenomenon of rising prices, often caused by an expansion of the money supply.
Compound of 通貨 (currency) and 縮小 (reduction, contraction).