Latest on Deflation in the News

Latest on Deflation in the News

Could deflation wreak havoc in the housing market?
Good deflation. Deflation is categorised into two types “good deflation” and “bad deflation” – but in housing market terms there is a fine line between the two. Good forms of deflation are generally created by bountiful, growing supply, and a sign that …

Economists agree: deflation is either good, or bad, or irrelevant
While the idea of lower prices may sound attractive, deflation is a real concern for several reasons. Deflation discourages spending and investment because consumers, expecting prices to fall further, delay purchases, preferring instead to save and …
Read more on FT Alphaville (registration)

Italy at risk of deflation: Central bank head Ignazio Visco
"There is no inflation in Italy any more, rather there are risks of deflation," Visco said at a commemoration ceremony in Rome for a murdered trade unionist. Visco added Italy's economic problems had the same causes that have long plagued the country, …
Read more on Economic Times

Emerging Market Slowdown Leaves Growth Edge Smallest in 14 Years
That could bruise them enough to trigger a fresh deflation shock for everyone else. “Transitions are rarely orderly,” the economists led by Neville Hill and James Sweeney said in a March 20 report. “A key risk this year is that some emerging economies …
Read more on Bloomberg

Are we in deflation now? And other questions you were too scared to ask about
In inflation-adjusted terms borrowers would see the value of their debts increase – another factor that could make them less likely to spend. This can be loosely characterised as “bad deflation”. Japan has been suffering from this kind of economic …
Read more on The Independent

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