Thursday, 23 May 2013

Are we in for Deflation hangover.....

Are we in for a period of difficult and without pain period of Deflation for the global economy. The problems in Europe seems clearly to mirror the Japanese lost decade. Economic performance in the US still remains below expectations, and Central Banks Globally are functioning like ultimate health machines trying to prop up Markets. The net result of all this is very low inflation expectations as Gavyn Davies post here in his Financial Times Macroeconomics' Blog. We maybe need to remember well how one resolves dilemmas ...Any dilemmas!

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