Deflation Watch

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

Recent developments for the eurozone’s third largest economy have not been good. Back on Aug. 6, the New York Times said: The Italian economy shrank in the second quarter … taking economists by surprise … . Italy’s gross domestic product contracted 0.2 percent from April through June, compared with the first quarter of 2014, Istat, [...]

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Originally published by MarketWrap Radio on October 14, 2014

Deflation

EWI’s Chief Market Analyst, Steve Hochberg, joined MarketWrap Radio host Moe Ansari on October 14, 2014. Steve and Moe discuss deflation and it’s affect on the markets.

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Originally published by GlobalPost on September 17, 2014 Read the original article.

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In a recent Bloomberg poll, 74% of global investors said they feared that the European Union was heading toward deflation. Government officials have expressed the same worry, including French Prime Minister Manuel Valls and German Finance Minister Wolfgang Schaeuble. Now add Poland’s finance minister to the list. Read this excerpt from a Sept. 17 GlobalPost [...]

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Originally published by Wall Street Journal on September 8, 2014 Read the original article.

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The Great Depression of the late 1920s and early 1930s started in Europe before arriving in the United States. In Germany, for instance, real GDP fell 1% in 1929 after growing 8.2% in 1927 and 2.8% in 1928. Is history set to repeat? Well, Canada’s finance minister believes a European deflation would have global consequences. [...]

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Originally published by CNBC on September 2, 2014 Read the original article.

Consumers are more likely to make purchases when they’re optimistic about the future than when they’re pessimistic. In recent times, consumer optimism was at its height during the 1990s bull market. But the rate at which money changes hands (money velocity) in the U.S. economy peaked in 1997, and has since been trending downward. Money [...]

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