Right now, the world is inflating like mad. Money growth in most of the major world economies is near or exceeding 10% a year, and China is the biggie at 18% plus. That, combined with historically low interest rates is causing huge finance and asset bubbles. Central banks are way...
That's a misperception that arose a few years ago when deflation seemed a risk and the future chairman of the Federal Reserve said that flooding markets with money could stop deflation. That's a misperception that arose a few years ago when deflation seemed a...
Byline: Vineeta Anand and Fred Williams Economists, fixed-income managers and investment strategists pooh-poohed the Federal Reserve Board's deflation concerns. They see a period of low inflation and low economic growth for several years ahead, Byline: Vineeta Anand and Fred Williams...
This paper tells us about bad deflations which involves a combination of falling goods and asset prices. It is against this background that the rest of this paper is set out. To give a flavour of the overall message of this paper, a sufficiently aggressive, and courageous central bank in...
The purpose of this paper is threefold. First, it aims to survey various discussions of the so-called "lost decade" from a macroeconomic perspective. Second, it reviews the sequence of how monetary policy responded to the weak economy during the decade and provides some preliminary analysis of the effects of policy...
The concern with deflation in industrialised countries has prompted a number of studies assessing the causes and consequences of deflation, proposing appropriate policy responses, as well as drawing lessons from historical experiences. The concern has also motivated particular interest in understanding the sources and dynamics of the deflations in Japan...
The paper can be seen as a primer on deflation. It briefly surveys some theoretical issues and monetary policy dimensions of deflation. It provides a backdrop against which to interpret the evidence of deflation, drawn from the historical records of many countries, with a few having data going back as...
This paper presents a dynamic, stochastic general equilibrium study of the causes of the international 'Great Depression'. It uses a fully articulated model to assess the relative contributions of deflation/monetary shocks, which are the most commonly, cited shocks for the Depression, and productivity shocks. It finds that productivity is the...
This paper reviews Japanese monetary policy over the last two decades with an emphasis on the experience of deflation from the mid-1990s. Deflation can be quite costly, and a key element in both preventing and escaping deflation is the management of expectations, using either price level or inflation targeting, because...
This paper presents a broad cross-country historical study of deflation over the past two centuries in order to shed light on current policy challenges. It first reviews the theoretical literature on deflation. It then characterizes deflation by distinguishing among the "good, the bad and the ugly" ones - considering both...
Alan Greenspan is spinning us a new tale of monetary deception. His old tale, in which he cast himself as a financial wizard saving us from the ravages of inflation, has suddenly taken a bizarre twist. No longer are we to tremble at the thought of inflation; Greenspan is now...
This paper discusses existing proposals to escape from a liquidity trap and deflation, including a method Foolproof Way, in the light of the optimal way to escape. Intentional currency depreciation and a crawling peg, as in the Foolproof Way, can implement the optimal way and, in particular, induce the desired...
Deflation can be defined as a falling general price level utilizing one of the common price indices: the consumer price index; the GDP deflator or other, narrower indices as the wholesale price index; or an index of manufactured goods prices. Falling indices of output prices can be the result of...
Many manufacturers do not yet appreciate how deflation — a decline in product prices — could wreak havoc with traditional channel management practices and lead to a loss of market position. Declining prices wreak havoc with the income statement of distribution intermediaries, who are “paid’ for providing services to customers...
In this article Galbraith describes deflation as the darkest possible side of The Force. According to Galbraith, Deflation prompts us to stop consuming goods because we assume that we can buy them for fewer dollars if we wait. Deflation, by some measurements, has been taking place in a small way...
This article is about the deflation. Apoplithorismosphobia is the Greek word for deflation and it defines that Apoplithorismosphobia is receding, too. Deflation isn't a temporary consequence of the 2000-2003 downturn. It explains that deflation is a signal that the age of inflation is over. The emergence of deflation reflects...
In the late currency board years, Argentina faced a real exchange rate adjustment through price deflation amidst growing devaluation expectations. Using a firm-level panel database to analyze the incidence of these factors on the currency composition of private debt and on firms' performance, this paper finds that widespread debt dollarization...
This article is about the impact of inflation and deflation. In washington -- As the economy has perked up in recent weeks, bond markets have responded -- pricing in higher inflation and rising interest rates, while dismissing fears of deflation. Surging growth may not quickly transfer into higher inflation....
Byline:Steven Goldberg, Kiplinger Washington Editors With the ten-year Treasury Bond below 4% and the Federal Reserve's short-term borrowing rate at 1.25%, economists and even the Fed itself are uttering the most feared word in Wall Street's Byline:Steven...
We think deflation fears are overblown, but it never hurts to ask, "What if?" When we look to stock market history, does deflation deserve its reputation as a stock market suppressant, or is it getting a bad rap? The stock market posts above-average returns when consumer prices are relatively stable....
Choose up to 5" more legroom with Economy Plus. Starting at $14.
Innovative USB Sleep'n Charge. Stylish Fusion™ finish. Ultra-portable. It's clear why the Satellite® U405 is a smart choice for you and your small business. Only from the laptop expert, Toshiba.
