Reflation's the act of stimulating the economy by increasing the money supply or by reducing taxes. It's the opposite of disinflation. It can 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 rates. Just as disinflation's an acceptable antidote to high inflation, reflation's considered to be an antidote to… (More on Reflation)