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Latest on Deflation in the News

Southeast Asia’s borrowers wince as deflation looms | Bangkok Post: business Because of deflation, borrowers are at risk of shouldering heavier debt burdens. In Thailand, loan growth is far below the rates seen after the 2008 global crisis when the authorities unleashed liquidity to revive the economy. In Singapore, bank loans … Read more on Bangkok Post Don’t worry about deflation, just enjoy the fall in prices while it lasts Fear of deflation has two pillars. The first is that if prices fall, or if they look like they are heading in that direction, people will put off making purchases […]

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Inflation Versus Deflation – The Battle Rages On

Inflation Versus Deflation – The Battle Rages On Weakening growth and deflationary pressures are not confined to mature, developed economies. Emerging economies are seeing falling inflation rates. The Bank of China this past weekend warned that they too see deflation and weakening growth, and plan … Read more on Equities.com 11 Signs That We Are Entering The Next Phase Of The Global Economic Crisis Wall street Well, the Nasdaq (NASDAQ:QQQ) finally did it. It has climbed all the way back to where it was at the peak of the dotcom bubble. Back in March 2000, the Nasdaq set an all-time record […]

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Deflationary News

Hungary cuts interest rate to record low Deflationary pressures are unlikely to disappear in the near term while the European Central Bank’s bond purchases–known as quantitative easing–are leading to appreciation pressures on the Hungarian forint, Barclays said. That “creates an opportunity … Read more on MarketWatch How Volatility Threatens Your Portfolio There is solid growth in U.S. employment, despite a little less strength in March 2015, and a sense that deflationary pressures, driven in part by lower oil prices, are abating. These fundamental forces have placed the Federal Reserve’s debate on … Read more on Barron’s What Is A Currency […]

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Deflationary News

Japan’s top central banker says U.S. growth should hit 3 pct. in ’15 Kuroda has made only fitful progress toward the goal of the 2 percent inflation rate he and Prime Minister Shinzo Abe said was needed to jolt the world’s No. 3 economy out of its deflationary rut. (AP Photo/Kyodo News) JAPAN OUT, MANDATORY CREDIT. Read more on Minneapolis Star Tribune NZ records second quarter of deflation New Zealand has recorded the second consecutive quarter of deflation, with falling petrol and diesel prices being the major factor pushing down the consumer price index. The index’s 0.3 per cent fall […]

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Deflationary News

Why deflation won’t work Publicly And Personally, I try to be non-partisan as regards whether we should adopt the Gold Standard or Not. One of my primary concerns is that, if and when we adopt the gold standard, there will be a deflationary trend to assets, products and … Read more on Gold Seek Yardeni: Easy Money Causing Deflation They don’t understand why inflation has dropped below their 2 percent targets, or why their ultra-easy monetary policies aren’t boosting inflation. Their conclusion is that they must continue to provide more easy money, which perversely is deflationary … Read more on […]

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Deflationist News

Riksbank Officials Lead Sweden Into a Trap A correspondent recently pointed me to the news from Sweden, which has stopped flirting with deflation and moved right in. It’s amazing: the country, which at first weathered the recent crisis fairly well and faced none of the institutional constraints … Read more on Truth-Out The Federal Reserve’s Latest Policy Decision Frustrates Bears And Central … The Federal Reserve stays on-message as it keeps recent inflation data in the proper perspective. The latest over-reaction to a Fed pronouncement likely shows a market eager to catalyze some source and reason for volatility. The Fed’s […]

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Eurozone gripped by deflation fears as inflation rate hits five-year low

Eurozone gripped by deflation fears as inflation rate hits five-year low ECB chief Mario Draghi with US Federal Reserve Chair Janet Yellen during a conference where he called for more growth-friendly policies. Photograph: David Stubbs/Reuters. Katie Allen. Friday 29 August 2014 12.41 EDT Last modified on Friday 29 August … Read more on The Guardian Economic developments are the key issue The European Central Bank has been inundating the banking sector with money, however the banks are too reluctant to give away credit and investors are too cautious because of an almost deflationist atmosphere in which consumption does not rise. Read […]

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Are You Prepared for a Rare Economic Deflation?

Are You Prepared for a Rare Economic Deflation? In 2002, Robert Prechter wrote Conquer the Crash to warn the world about the prospects of deflation. In the January 2003 Elliott Wave Theorist, Prechter remarked: The loneliness of the unequivocal and bearish deflationist is hard to overstate. When I … Read more on Elliott Wave Gold Is Unloved But Still Not Cheap Fundamentally, inflation is simply not a concern for anyone in most developed economies. Central banks are still fighting disinflationary forces and deflationist psychology, both lingering from the financial crisis. In “Low Inflation in a World of … Read more […]

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Why deflation is bad for Zim

Why deflation is bad for Zim However, this would not be a cause for concern if the economy was growing. On the contrary, economic growth has stalled and the threat of a prolonged period of deflation poses significant challenges for policymakers. So, why is deflation so bad and why … Read more on Zimbabwe Independent Choppies worried about deflationary pressures The deflationary pressures were due to the weakness of the South African Rand as well as falling commodity prices. In the period, the Botswana Stock Exchange (BSE) listed company recorded a 20 percent jump in revenue to P3 billion while gross […]

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Latest on Deflationary News

China Frets Over Deflation Threat Responding to questioning at a press conference marking the end of China’s annual legislative sessions on March 15, Premier Li Keqiang disputed reports that the economy is already getting stuck in a deflationary slump. “I don’t think there is deflation … Read more on Radio Free Asia Top economists play down fears of a harmful deflationary spiral Many economists and policy makers have raised concerns that falling prices could lead consumers to delay purchases, reducing spending and cause further falls in prices. “There is not much evidence so far that deflation has been associated with […]

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