Deflation Watch

Originally published by New York Times on August 23, 2014 Read the original article.

In his Aug. 22 Jackson Hole, Wyo. speech, European Central Bank President Mario Draghi talked about the double-whammy that hit the eurozone: the global financial crisis (2008-2011) and the sovereign debt crisis (2011 – ). He says the one-two punch is the main reason that European Union unemployment remains doggedly persistent. Draghi also said, “Inflation [...]

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Originally published by Dawn.com on August 1, 2014 Read the original article.

French Prime Minister Manuel Valls sees a real risk of deflation for the eurozone. He recently described the European Central Bank’s economic policies as ineffective and said that unemployment “has reached an intolerable level.” Eurozone policies had not delivered economic rewards and there was a real risk of deflation in the face of lower-than-expected growth [...]

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Originally published by Marketwatch on August 1, 2014 Read the original article.

The price performance of Wal-Mart’s stock relative to the S&P 500 may be confirming what chief investment strategist Michael A.Gayed calls a “deflationary pulse.” Here’s an excerpt from Gayed’s August 1, Marketwatch article: Historically, when inflation expectations are falling, what I like to call a “deflation pulse,” risk assets tend to have a difficult time [...]

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Originally published by Bloomberg on July 30, 2014 Read the original article.

In March, a member of the European Central Bank Governing Council said that the “deceleration of prices” in the eurozone would be temporary. But it appears that much of the European Union’s price deflation has become a trend. The ECB’s assessment of price deflation has been shortsighted, according to a July 30 Bloomberg article by [...]

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Originally published by CNBC on July 31, 2014 Read the original article.

In May, the International Monetary Fund saw only a 25% chance of the eurozone slipping into deflation by 2015. But lower-than-expected eurozone inflation has the financial media talking about renewed deflation fears. In July, eurozone inflation slipped to the level of October 2009. Initial figures show that inflation in the European Union rose only by [...]

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Originally published by Bloomberg on July 23, 2014 Read the original article.

Despite record-low interest rates, European economies remain sluggish. Will the European Central Bank try bond purchases to stimulate economic growth? Not if Germany has its way, according to a July 23, Bloomberg article titled, “Draghi Faces German Hard Line on Avoiding Deflation.” Here’s an excerpt: Germany’s intransigence is … in play as Draghi, the Italian [...]

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