[deadrock]

In layman's terms, is deflation the opposite of inflation?

[Free Vulcan]

Yep.

[Olog-hai]

In a way, but with deflation can also come devaluation of goods, which would cause the real problem called “deflationary spiral” where the real value of debt skyrockets and production is discouraged.

[Vince Ferrer]

Don’t be in debt during deflation. The debt doesn’t deflate, but your income, and your ability to pay it will. Otherwise, deflation can be good, if you can keep your income up past the rate of deflation.

[OneWingedShark]

In layman's terms, is deflation the opposite of inflation?

In layman's terms, yes; realistically, no.
There's a term, biflation, which has been coined to describe simultaneous inflation and deflation.

A better opposite of inflation would probably be market crashes (like the housing bubble) which are corrections on inflated items [in the example's case housing].
(A better opposite of deflation would probably be [legitimate/full-economy] market growth; which would represent the strengthening of an economy.)

[fella]

So does deflation mean my money will buy more? If so, bring it on.

[entropy12]

Yes, most products become cheaper to buy. It is good for those with jobs and savings. Not so good for stock holders. It will hurt the top 1% the most.

[Georgia Girl 2]

Yes.

[hinckley buzzard]

In general usage they refer to rising or falling costs of goods and services. Originally they meant what was happening to the size of the money supply.

[lentulusgracchus]

In layman's terms, is deflation the opposite of inflation?

I read the guys arguing about it over on Minyanville.com, and I can't for the life of me figure it out, whether we're deflationary or inflationary; but the biggest deflationist over there, Mike Shedlock, doesn't explain why, if we're in a deflationary environment, prices are going up. He and the deflationists insist on a definition of inflation/deflation that is couched solely in terms of the monetary aggregates -- M1, M2, M3 -- and does not reflect what people (as opposed to experts) normally think of as inflation, viz., price inflation.

They insist that price inflation does not = inflation, only M2/M3 inflation = inflation.

They suggest then that price inflation is now delinked from monetary inflation. Which helps a whole lot, guys -- thanks for nothing!!!

[UCANSEE2]

In layman's terms, is deflation the opposite of inflation?

Uh.... deflation is to inflation what global warming is to climate change.