Deflation Watch

Originally published by Telegraph on February 24, 2015 Read the original article.

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In January, the Eurozone saw its biggest consumer price slide since the monetary union formed in 1999. Seventeen out of the 19 member states recorded negative prices, including Germany, the Continent’s largest economy. Greece registered the worst price slump at -2.8%. The European Central Bank hopes to fend off deflation with a quantitative easing program […]

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Originally published by The Guardian on February 15, 2015 Read the original article.

Bank of England

Great Britain’s central bank has second thoughts on its plan to raise interest rates in the face of stubbornly low inflation (currently at 1%). The Bank of England’s inflation-rate target is 2%. A member of the Bank of England’s Monetary Policy Committee, who had consistently voted for higher rates since August 2014, explains why he […]

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Originally published by Nasdaq on February 17, 2015 Read the original article.

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You may recall that European financial authorities had to rescue Spain’s cash-starved banking sector in 2012 as part of the debt crisis. Spanish banks had suffered big losses during the country’s real estate market collapse. Today, Spain’s economy still faces a serious challenge: The nation’s jobless rate is 23.7%, the second highest in Europe after […]

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Originally published by Reuters on February 12, 2015 Read the original article.

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The open narration of the 1960’s television series “Star Trek” includes the phrase “to boldly go where no man has gone before.” Similarly, Sweden’s Riksbank boldly goes where no central bank has gone before in its battle with deflation. On February 12, the Riksbank became the first central bank to move its main repo rate […]

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Originally published by Reuters on January 22, 2015 Read the original article.

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Just a few years ago, many of the media reports about China’s economy focused on booming growth. But the focus has undergone a remarkable shift. Today, an increasing number of articles center on China’s battle with deflation. Yes, the economy of the world’s most populous nation did grow 7.4% in 2014, but that was the […]

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Originally published by Reuters on January 25, 2015 Read the original article.

deflation

Conquer the Crash published in 2002 and warned about a devastating economic deflation. Back then, most economists said deflation was “impossible.” The shock of the 2007-2009 financial crisis prompted some economic observers to shift their view of deflation to “unlikely.” Now that deflation is a reality in parts of the European Union, pundits are pointing […]

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