Deflation Watch

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

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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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Originally published by Business Insider on January 11, 2015 Read the original article.

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So far, the United States has largely kept the economic demon of deflation at bay. But the latest data suggest that the U.S. may be inching closer to the deflationary plight of the European Union. For example, the 5-Year breakeven inflation rate in the U.S. has fallen to 2009 levels. A January 11 Business Insider […]

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Originally published by ABC News on January 12, 2015 Read the original article.

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Relatively few U.S. economists expect deflation. So they don’t look for signs of its development. That’s why they’re puzzled that the U.S. inflation rate remains below 2% despite robust hiring and an improving unemployment figure. Read this excerpt from ABC News (Jan. 12): Month after month, U.S. hiring keeps rising, and unemployment keeps falling. Eventually, […]

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Originally published by BBC on January 7, 2015 Read the original article.

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Inflation reigned from 1933 to 2008. Since 2008, the global economic trend has been in transition. World economies appear to be pivoting from a psychology of expansion to conservatism. Here’s an excerpt from a January 8 Wall Street Journal article: Inflation rates across the world’s largest economies eased for the sixth straight month in November […]

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Originally published by CNBC on December 4, 2014 Read the original article.

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Sweden is known for Volvo, the pop group ABBA and bitterly cold temperatures. And, these days, the Scandanavian nation is also facing a cold economic threat: deflation. “Prices have been falling in annual terms for most of 2014 and there is a real risk that Sweden slips into a spiral of deflation and stagnation like […]

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Originally published by Reuters on December 24, 2014 Read the original article.

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A December 24 Reuters article says: President Francois Hollande has seen his popularity fall to the lowest ratings in French polling history, with a key factor being his failure to live up to promises to tackle unemployment. In November, the jobless population in France was the highest ever. Also, an economist with BNP Paribas says, […]

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