Abstract:

Reflaction is a significant increase in the scale of inflation as a reaction to the period in which prices were below production costs. There were several ambiguously confirmed examples of reflation in the history of economics. It is worth proposing a thesis: based on experience, are we able to predict if this phenomenon will repeat itself in the current decade and what symptoms of assumptions should we base our macroeconomic predictions in this matter. This article was written on the basis research methodology using economics data & outlook supported by literature’s thesis.