This article discusses the possibility of deflation for the first time since the Eisenhower administration. Some companies are already blaming deflation for decreased earnings. Joseph Stiglitz also points out to the importance of that issue. Currently, the US faces disinflation, which is a slowing in the pace of increase in consumer-price index.
1 comment:
Great article- provided useful information on the current economy with the Federal Reserve likely keeping interest rates near zero through next year, deflation, and the consumer-price index showing signs of disinflation (a slowing in the pace of increase). It will be interesting to see what plays out and how the economy will recover. For now, we have to handle the current situation and learn from our mistakes in order for something like this not to occur again.
Post a Comment