Latest on Deflation in the News

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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 …
Read more on Telegraph.co.uk

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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