Central banks in the U.S., Europe and Japan are pushing interest rates toward zero to slay the potential for deflation.
Now, however, it's deflation that has investors and the Federal Reserve panicked.
deflation also means that the economy adjusts to real shocks in the most disruptive way possible.
But if inflation is negative--i.e., if they have deflation--then they have to do something more drastic.
I join most economists in thinking that deflation is bad, and it will be good if Japan can stop it.
At the present writing, world industry is going through a process of deflation from the high prices induced by the war.
Three pairs of lungs sighed audibly in process of deflation.
The second danger is that deflation itself will take place without constructive consideration.
deflation, on the other hand, is usually a much shorter period.
deflation basins, called blowouts, are hollows formed by the removal of particles by wind.