Deflation Watch

Originally published by Reuters on December 10, 2014 Read the original article.

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A recent Wall Street Journal article notes: For the 30 years through 2011, China grew at an average annual rate of 10.2%, a record unmatched by any major nation since at least World War II. But, now, many of the headlines about China’s economy are focused on a slowdown. Financial articles even mention the risk […]

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Originally published by Reuters on December 1, 2014 Read the original article.

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The Asian nation most associated with the word “deflation” is Japan. But, now, South Korea’s government is troubled by the prospects of deflation. Located just 120 miles across the Korea Strait from Japan, Korea is grappling with heavy household debt and slow income growth. South Korea’s central bank has cut interest rates, and the government […]

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Originally published by Global Research on November 19, 2014 Read the original article.

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The purpose of quantitative easing (QE) by a central bank is to stimulate a nation’s economy. The Economist provides a brief description of QE: To carry out QE central banks create money by buying securities, such as government bonds, from banks, with electronic cash that did not exist before. The new money swells the size […]

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Elliott Wave International’s Brian Whitmer offers his take on the recent rally in European stocks: “We’re starting to see some signs that a longer-term bearish stance is justified.” In the interview below, Whitmer also discusses why deflation in Europe is about to intensify.

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Originally published by Bloomberg on October 31, 2014 Read the original article.

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Japan has been mired in deflation for over two decades. Residents of the world’s third largest economy have come to expect price declines. On October 31, Bank of Japan Governor Haruhiko Kuroda surprised many economists when he announced additional monetary stimulus. Kuroda’s aim is two-fold: restore economic confidence among the Japanese and reach the BOJ’s […]

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

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In September, core inflation in the eurozone slowed to a 5-year low of 0.7%. The fear of deflation looms large. European Central Bank President Mario Draghi recently said that he is “fully determined” to do what it takes to support a higher inflation rate. However, an economist at a German financial firm says “It’s looking […]

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