Relevant and even prescient commentary on news, politics and the economy.

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Expectations for 2005

…we expect no change in the zero interest rate policy,” said Baader at Lehman Brothers. “We would see (hikes in Japan) if we foresaw an end to deflation and if…

…are certain that higher inflation is a foregone conclusion, while others dismiss the concern. Who is right? Myself, I was in the camp of those worried about deflation for much…

New CPI Data The danger of deflation seems to be receding. The BLS’s newest CPI data (for February) indicates an increase in the core rate (excluding food and energy) of…

deflation for a couple of years, and as fester reminded us yesterday, China now has a potential banking crisis to contend with. China’s banks are groaning under the weight of…

…prices right now. Any further disinflation, however, will bring up the dreaded ‘d’ word: deflation. And as I suggested last week, deflation could cause some serious problems. Stay tuned. Kash…