Editing Reflation (section)

== Policy ==
{{see|Economic stimulus}}
The term "reflation" can also refer to an [[economic policy]] whereby a government uses fiscal or monetary stimulus in order to expand a country's output.  This can possibly be achieved by methods that include reducing tax, changing the money supply, or even adjusting [[interest rate]]s.<ref>{{cite web |title=Global Reflation Continues |url=https://www.morganstanley.com/im/publication/insights/investment-insights/ii_globalreflationcontinues_us.pdf |publisher=[[Morgan Stanley]] |access-date=8 June 2021 |date=March 2017}}</ref>

Originally, it was used to describe a recovery of price to a previous desirable level after a fall caused by a recession. Today it also (in addition to the above) describes the first phase in the recovery of an economy which is beginning to experience increasing prices at the end of a slump. With rising prices, employment, output and income also increase till the economy reaches the level of [[full employment]].<ref>{{cite web |last1=Baker |first1=Jonathan |title=The Reflation Trade: What Is It? |url=https://www.bdfllc.com/knowledge-center/wealth-watch-newsletter/the-reflation-trade-what-is-it/ |publisher=BDF LLC (BDF) |access-date=8 June 2021 |date=14 January 2021}}</ref>