Archive for August 13th, 2010

Deflation – How It Can Exist Even As the Economy Recovers

Friday, August 13th, 2010
Deflation – How It Can Exist Even As the Economy Recovers

Deflation is being presented as a force that trips up the economy. The simple reasoning: As prices fall, consumers and businesses postpone buying, thereby causing prices to fall further. Hence, a downward-spiraling cycle. Like many of the negative forecasts we have read over the past months, this one is overly simplistic. It ignores two... »

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