Deflation

reducing money supply in the market resulting in an increase in the purchasing power of money. Colloquially its a decline in the average level of prices, a situation where for the same amount of money you can buy more goods of goods and services. The opposite of inflation is deflation.

Effects of deflation:
1)reduction in profitability of production
2)increasing of the purchasing power of the working part of society
3)consumption and industrial orders are delayed(in anticipaton of lower prices)
In order to fight deflation Central Banks inject more cash into the economy, for instance , by directly buying assets such as bonds and shares or by increasing the amount of cash commercial banks have in their vaults-Those methods are known as QUANTITATIVE EASING