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…
…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…
…money creation from 2001 to 2006 once it thought the economy was safely out of the woods. But Japan crashed back into deeper deflation as soon the Lehman crisis hit….
…falling. Sometimes it is in transition between the two. There are many insights from this graph… Is deflation possible? It depends on labor share. Can Japan raise its inflation? It…
…fall in 1997-98, and that has caused deflation to take hold.” (source WSJ) I fully agree with Prof. Yoshikawa. and Today is the big day for Prime Minister Abe’s push…
…rate of interest (1.0%) = nominal interest rate (0.5%) – expected deflation (-0.5%) So yes, inflation can keep falling according to the long run Fisher effect. The combination of quickening…
People are talking about low inflation and possible deflation. (Krugman today, and this article by St. Louis Fed, thanks Marko). Many think inflation will rise back up. Some think inflation…