Biflation

Biflation, invented by Dr. Osborne Brown, is the simultaneous occurrence of inflation and deflation in an economy. However, this term is a misnomer because both inflation and deflation refer to overall rise or fall in all prices, instead of changes in relative prices between different goods. Biflation occurs when expansionary monetary policy is applied to alleviate a recession. During Biflation, prices for debt-based assets such as home mortgages decline, and prices for related securities along with commodity-based assets rise.