In the fairytale of Goldilocks and the Three Bears, the young girl famously prefers the porridge, the chair and the bed which are “just right”. The Goldilocks Principle is now part of the economics lexicon describing an economy which is not too hot or too cold, but just right. She has made a few appearances […]

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Speculation is mounting that Japan is ready to declare an official end to its era of deflation. Japanese Economy Minister, Toshimitsu Motegi, said recently that there is no change to the government’s stance of looking at a range of economic indicators, including consumer prices and the gross domestic product deflator, to determine whether it can […]

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Qatar, the gas-rich Persian Gulf state, is going through one of the most challenging periods in its history. It has been accused of supporting terrorism and has been cut-off, economically and diplomatically, by its gulf neighbors since June. The government is having to shore up the banking sector. Traditional causality thinking would have you believe […]

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“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” – Milton Friedman The rapid pace of money supply growth in Hong Kong may have reached an exhaustion point. This could weigh on […]

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Australian debt has inflated enormously over the last few years but when will it deflate? We present an indicator that may help answer that question. Hamilton Bolton founded the Bank Credit Analyst research company (now known as BCA Research) in 1949. He and Ralph Elliott corresponded and shared similar views on how markets cycle. After […]

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In the Quantity Theory of Money section of our Deflation Basics Series, we learned how the level of prices in an economy are affected by the amount of money sloshing around. In this section, we will learn about how money is created in the first place. Money is created courtesy of a magic trick known […]

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