Editing Reflation (section)

==Overview==
In this perspective, reflation, is contrasted with inflation (narrowly speaking) ''above'' the some long-term trend line, while reflation is a recovery of the price level when it has fallen ''below'' the trend line.<ref>{{cite web |title=Position for reflation |url=https://www.ubs.com/global/en/wealth-management/chief-investment-office/investment-opportunities/key-investment-ideas/2021/position-for-reflation.html |publisher=[[UBS]] |access-date=8 June 2021 |language=en}}</ref><ref name="SMH">{{cite web |last1=Parkes |first1=Graham |title=What is a 'reflation trade' and why is it important to investing? |url=https://www.smh.com.au/money/investing/what-is-a-reflation-trade-and-why-is-it-important-to-investing-20210223-p57543.html |website=[[The Sydney Morning Herald]] |access-date=8 June 2021 |language=en |date=2021-02-23}}</ref> For example, if inflation had been running at a 3% rate, but for one year it falls to 0%, the following year would need 6% inflation (actually 6.09% due to compounding) to catch back up to the long-term trend. This higher than normal inflation is considered reflation, since it is a return to trend, not exceeding the long-term trend. 

This distinction is predicated on a theory that [[economic growth]], where there is long-term growth in the economy and price level, is both sustainable and desirable. Just as [[disinflation]] is considered an acceptable antidote to high inflation, reflation is considered to be an antidote to [[deflation]] (which, unlike inflation, is considered bad regardless of its magnitude).

Reflation has also found usage in forensic economics to describe a return to monopolistic (exorbitant) price paths following correction. Inflation can be regarded as expansion of prices beyond previous levels, while reflation can describe return to a previous pricing strategy.