21. The current situation, while similar in its narrow focus, is driven by disinflation . 22. Disinflation is reduction in the inflation rate.23. "This is a major disinflation shock to the system, " said Glassman. 24. Remember when the rolling disinflation of the Reagan years hit the Rust Belt in the early 1980s? 25. That's the smallest share of the economy since 1974-- a significant disinflation factor. 26. "The disinflation -inspired bull market of 1982 to'96 is over," 27. The resulting glut in global capacity reduced prices overseas, allowing the United States to import disinflation . 28. First, disinflations are always contractionary ( although announced disinflations are less contractionary than surprise ones ). 29. First, disinflations are always contractionary ( although announced disinflations are less contractionary than surprise ones ). 30. Behind this phenomenon are two economic trends that coincided in the last decade : global inflation and American disinflation .
