deflationary

But second, it would be folly to put the burden of adjustment solely on them, for that would create a huge deflationary bias.

NR: It is going to be a year of economic stagnation and recession for most of the global economy with deflationary pressures . . .

But the deflationary threat is real and is beginning to be recognised even in Germany.

If Japan were to fall into a deflationary trap, it would not suffer alone.

The recent fiscal consolidation measures made the matter far worse by widening an already formidable deflationary gap even wider.

Meanwhile, 'if oil spikes above $100, I expect a severe deflationary impact on the U. S. economy and world economy, ' he said.

When all the member countries try to be like Germany they are bound to send the eurozone into a deflationary spiral.

Of course, in a deflationary situation, generating inflationary pressure is precisely what the policy is trying to accomplish.

A low positive inflation is usually targeted, as deflationary conditions are seen as dangerous for the health of the economy.

Estimating how big the output gap is, and how much of a deflationary threat it still poses, is not easy.

That's a scary number, big enough to pose a real risk that the U. S. economy will get stuck in a Japan-type deflationary trap.

Is there any doubt about this ongoing inflation capitulation and the beginning of sharp deflationary forces?

Now, let me stress that I am not trying to argue that price falls are a good thing; a severe deflationary spiral is clearly dangerous.

The United States experienced such a deflationary spiral during the Great Depression in the 1930s, and Japan experienced one in the 1990s.

First, though, China has to contend with a short-term deflationary boom, which will end up in a deflationary bust.

and you may recall that part of the reason the Federal Reserve engaged in quantitative easing was the threat of a deflationary spiral.

But Japan cannot get out of the deflationary mess if the yen keeps strengthening.

"The risk appears to be deflationary or at least disinflationary in the medium term, " said Fisher.

'Many companies expanded capacity too aggressively and now deflationary pressure will hit as demand slows, ' she said.

When all countries are reducing deficits at a time of high unemployment they set in motion a downward deflationary spiral.

This Faustian bargain would be acceptable if only to stabilize what now appears to be an even more dangerous deflationary debt liquidation.

The cabinet office said in its monthly report: "Recent price developments show that the Japanese economy is in a mild deflationary phase. "

This time the Fed is largely alone in seeking insurance against the possibility of a deflationary depression.

Because rental prices heavily influence the calculation of core CPI, such a development would help to stave off deflationary jitters.

Gold represents a safe haven in a deflationary panic market as well as in an anticipatory inflationary market.

However, as businesses cut production in response to lower profitability, the demand weakness is no longer deflationary .

One novelty is that the case is now presented as a way of dealing with deflationary as well as inflationary threats.

This rational behavior leads to worsening results for everyone until the deflationary spiral comes to its natural end.

The danger with such a strategy is that once a deflationary psychology sets in, it's difficult to turn things around.

Although a housing and credit collapse would be deflationary, preempting that risk too dramatically could be inflationary.

Unlike other rich economies wrestling with deflationary forces and minimal growth, though, Japan has largely come to terms with its decline.

Second, the bleaker and more deflationary forecasts seem to ignore trends in the major developing economies.

Proper anti-deflationary action could have the side-effect of weakening the yen, giving Japanese exporters a much-needed shot in the arm.

If you were looking at only headline inflation, you might think that the United States was entering a deflationary spiral.

Emerging markets are in a very different cycle to the developed world now, with inflationary not deflationary pressures.

Two storms are simultaneously buffeting the world economy: an inflationary commodity-price storm and a deflationary financial one.

But UK economic activity is anaemic and public sector cuts could be deflationary, so the MPC has much to argue about.

And with each passing month we drift closer to a Japanese-style deflationary trap.

In conclusion, a sharp slack in goods, labor and commodity markets will lead to global deflationary trends over the next year.

Its ruling spirits combine a penchant for micro and industrial policies that destroy jobs with an espousal of deflationary macro policies.

That said, there is one scenario that could produce a 1930s-style deflationary depression in the US: a large-scale financial meltdown.

But it does suggest that investors cannot afford to put all their eggs in the deflationary basket.

They thought that budget deficits would stimulate growth under all circumstances, not just those of a deflationary depression.

Unfortunately, the monetary unit of measurement is not a stable measure in times of inflationary or deflationary price changes.

In fact , it's saying the U. S. will likely be gripped by a decade - long deflationary bout with little to no GDP growth .

But central banks struggled to avoid a deflationary outcome; the result was a loose monetary policy that encouraged asset bubbles.

The deflationary impact of Chinese overcapacity would be felt everywhere, potentially putting the world trading system at risk.

Less external deflationary pressure must be offset by less inflationary pressure from domestic demand.

Unlimited Swiss buying of euros could push up the single currency, adding to deflationary pressures in the region.

It is rather like a game of deflationary "pass the parcel" in which the loser is whoever gets landed with the strongest currency.

Over-indebtedness born of the housing boom may also contribute to deflationary pressures during the bust.

One is that talk of more easing creates, at least in some cases, deflationary pressure of its own.

Markets are right to question the will of governments and societies to take the deflationary strain.

Although worries about Japan-style deflation in the US are overblown, deflationary pressures are more worrisome than inflation.

The simplicity of the solution, however, is not easily achieved once deflationary momentum takes hold.

They were forced to raise interest rates in the teeth of a deflationary crisis.

as a result , manufacturers will reduce production , and the economy may fall into a deflationary spiral.

In theory businesses and workers should quickly adjust to a deflationary shock, by slashing their prices and wages.

In a deflationary environment, the weight of accumulated debt can sink the banking system and push the economy into depression.

But overcapacity will lead inevitably to serious deflationary pressures, starting with the manufacturing and real-estate sectors.

Worse still, in some ways the Spanish economy is less well placed than that of Greece to endure many years of deflationary budget policy.

Then the Japanese stock and real-estate bubbles collapsed, and Japan entered the deflationary depression in which it's still mired.

Without the recycling of capital, excess savings in Asia would have been profoundly deflationary.

But I do not see this economy going the deflationary way of Japan.

If anything, some seem anxious to unwind their quantitative easing and normalise interest rates despite the prevalent deflationary pressure.

SINCE the bursting of Japan's asset bubbles in the early 1990s, the country has undergone a long and deflationary process of debt reduction.

Prices would move toward the inflation target of 2 percent, removing the threat of a deflationary spiral.

The previous record monthly drop, of 4. 3% in January 2001, came as Japan was struggling to drag itself out of a deflationary spiral.

Many stocks in the consumer-staples sector will likely hold up well in a deflationary period, money managers and analysts say.

The deflationary effects from the asset deflation are temporary. They shift the demand curve downwards and decrease inflationary pressure.

Worst of all is the possibility that the economy will, as it did in the '30s, end up stuck in a prolonged deflationary trap.

It's true there are deflationary forces at work, but I believe Bernanke has overcome them and will continue to do so.

But cautious incrementalism, ironically, risks letting the world slip ever further down the deflationary spiral.

Despite such seeming deflationary numbers, futures markets until recently expected a Federal Reserve rate increase by December.

And his deflationary view inclines him against exposure to commercial property and commodities.

And will the U. S. and global economies soon face sharp deflationary pressures?

China's economy is overheating now, but, over time, its current overinvestment will prove deflationary both domestically and globally.

"The potential deflationary impact of the eurozone sovereign debt problems is tremendous. "

One point to consider: The calculation of shelter costs in the consumer-price index potentially exaggerates deflationary pressures.

Because in a deflationary environment, low investment yield of treasury bonds is a good choice.

So you are drawing quite a bleak picture, you've talked about the deflationary environment. Is there anything that's safe? Any assets?

The inevitable bust took down the banking system and set off a deflationary dynamic from which Japan has yet to recover.

Otherwise, deflationary expectations may swiftly turn into expectations of above-target inflation.

And both the United States and Europe are well on their way toward Japan-style deflationary traps.

In 2002 and 2003 he gave speeches on how to avoid deflation in the US and about what Japan should do to escape its deflationary slump.

Moreover, the OECD forecasts a significant output gap - and so persistent deflationary pressure - at least until 2005.

"It reinforces the deflationary fears that the Fed has been voicing, " said George Davis, currency strategist at RBC Capital Markets.

This trend will reawaken deflationary concerns prompting Federal Reserve Chairman Ben Bernanke to keep interest rates at zero.

In a deflationary environment, longer-term government bonds tend to do well.

The Greek tragedy also illustrates the extreme danger posed by a deflationary monetary policy.

Nor does a new outbreak of high inflation seem imminent, given the pervasive deflationary conditions in most of the rich world.

Deflationary pressure has increased to consumption and business investment will be adversely affected.

Bond investors may just be slow to catch on, as the Japanese were when their deflationary period started.

In a deflationary economy, a 30-year government bond with a 4% yield is a great bet.

Prof Roubini predicts a short-term rise in inflation, followed by deflationary pressure as too much capacity comes on stream.

Of course, there's the down side. The new economy does not mean we will never have another recession or even a deflationary spiral.

The new economy does not mean we'll never have anther recession or even a deflationary spiral.

As well as heading off deflationary fears the programme has given a further lift to share prices.

Several key indicators are predicting a deflationary environment going forward.

To PIMCO, the remedy for this deflationary delevering and mini-depression is simple and almost axiomatic: stop the decline in asset prices.

Like Japan in the 1990s, the Fed is also dealing with hints of a damaging deflationary spiral, or broad-based decline in prices.

Nor is China's deflationary effect on global tradable-goods prices about to end.

The inflationary effect of loose monetary policy of the past was offset by the deflationary effect of globalisation.

The deflationary impulse has been inflamed by the failure of the banks to resume their role as financial intermediaries since 2008.

Are rich economies heading merely for a bout of falling prices, or for a 1930s-style deflationary spiral?

But when populations shrink, overinvestment gets worse over time, creating a deflationary spiral.

"If the economic outlook and deflationary risks so require, the SNB will take further measures, " it said.

Price cutting. In a deflationary period, people love bargains.

This is probably just the beginning of the deflationary period.

De Roquefort's voice had a calculating and deflationary effect.

In other words, deflationary expectations are taking hold in both businesses and households.

But others are concerned that excess production capacity and depressed global demand could lead to increased deflationary pressures.

So the risk of a global deflationary depression is small .

Meanwhile, the fundamental trend in the West remains profoundly deflationary.

The first is the failure to recognise the strength of the deflationary pressures (see chart).

In a situation where there is unemployment of resources there is said to e a deflationary gap.

However, that still left a deflationary gap of over 5% of GDP, which threw the Irish economy into the deflationary spiral.

But in banking and finance, a crisis leads to "deflationary destruction" as capital is eliminated.

The deflationary debt trap is threatening to destroy a still-incomplete political union.

Third, some argue that a more flexible system will prove deflationary and increase Chinese unemployment.

Sentiment has also been hurt by deflationary pressure and high unemployment rates.

I'm afraid this is going to have a very deflationary effect on the economy of Western Europe.

China has turned decisively from being a deflationary to an inflationary factor in the world economy.

GM, says Mr Warburton, has been "the overriding deflationary force on industry pricing" for decades.

That delay slows overall economic activity and can cause a deflationary spiral.

"We think deflationary pressures will again rear their head, " says Mr Curnutt.

Keeping rates low would help prevent deflationary forces from taking hold.

That view is based on another expectation--that growth will recover rapidly to trend levels and deflationary pressures will disappear.

Excess savings in Asia, northern Europe and the petro-economies are deflationary.

Excess capacity there imparts a deflationary bias on the global economy.

There is a growing concern on deflationary pressure as labor cost, oil and commodity prices continue their decline.

Yet this anti-deflationary zeal is precisely what alarms people like Mr Meltzer.

A clampdown on deficits would intensify the deflationary forces in the economy and would lead to a new and more intense recession.

For instance, a strong yuan put deflationary pressure on the Chinese economy in the late 1990s.

Such worries may actually help soothe the market's deflationary angst.

With the Fed meeting Tuesday, the danger at the moment is that a deflationary mind-set is taking hold.

But as Japan has demonstrated, even countries with their own currencies can get stuck in a deflationary trap.

The historic wealth destruction of 2008 was obviously deflationary.

The strong yen has also added to deflationary pressures.

It will intensify deflationary and political pressures in Europe's south and so raise real interest rates over time.

Also, Japanese consumers have a deflationary mentality: If you wait long enough, prices will fall.

There are also good prospects for deflationary pressures to ease further.

The economy will slow further, the deflationary pressure will increase again, debts will become more burdensome, and so on.

A deflationary mindset started to take hold.

It also is lower than the prior 1. 1% trough reached in late 2003 during the last deflationary scare.

Cash is king in a deflationary world.

The lesson from Japan is that fiscal profligacy and deflationary pressure can last longer than anybody imagines.

Deflationary pressures eased, with consumer price inflation falling 1. 2 per cent in August, compared with a 1. 8 per cent drop in July.

A severe global recession will lead to deflationary pressures.

The sobering lesson is that conventional policy may not prevent a prolonged deflationary slump.

It's a deflationary force, if not handled right.

Many fear this is just another step on a deflationary journey that could last years.

But that is creating deflationary overcapacity, fear the newly converted bears.

In contrast, an economy that is growing more slowly would have a tendency toward deflationary pressure and recession.

A eurozone built on on one-sided deflationary adjustment will fail.

Deflationary forces-IT and China are no more.

The country, after all, has been in the grip of deflationary forces for over a decade.

That is why we believe that 2003 will continue to face deflationary pressures.

Deflationary pressures on Hong Kong are a reflection of the current difficult environment.

However, I am more certain than he is that the maximum deflationary pressures have passed.

second, a deflationary adjustment in the periphery alone, together with structural reforms, to force down nominal wages;

pursue a deflationary policy (the policy of deflation)

The Current Deflationary Economic Depression in Japan