Deflation
Economic Issue
Economy back in state of deflationJapan is in a state of deflation for the first time in about three years, the government declared Friday, warning that falling prices and a further worsening of employment conditions may hurt the nascent economic recovery. "Recent price... In this article: Deflation, Bankruptcy, Bank of Japan, and Japan |
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BBC News | 1 day ago
Japan says deflation has returned
Deflation returns to the Japanese economy Japan's government is less upbeat than its central bank Deflation has returned to the Japanese economy for the first time since 2006, the government has warned. The Cabinet Office said the...
In this article: Japan, Recession, and Unemployment
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Times Online | 1 day ago
Japan slides into deflation
Navigation - link to other main sections from here Japan has officially plunged back into a state of deflation, condemning its struggling companies to a purgatory of falling prices and setting up a potentially explosive collision between...
In this article: Bank of Japan, Japan, Purgatory, Recession, Democratic Party of Japan, Central Bank, and Asia
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Reuters | 1 day ago
WRAPUP 2-BOJ stands firm as govt urges response to deflation
...[ID:nECONJP]) * BOJ upgrades view on economy, keeps rates at 0.1 pct * Says to keep very easy monetary conditions * Govt says Japan in deflation; 1st announcement since 2006 * Shirakawa says weak demand behind deflation (Adds...
In this article: Masaaki Shirakawa, Recession, and Japan
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AP Online | 1 day ago
Japan warns that deflation can drag on recovery
TOKYO (AP) - Japan's government highlighted the danger of deflation for the first time in three years Friday, warning that falling prices and a further worsening of the labor market could drag on the weak recovery. Meanwhile, the...
In this article: Japan, Credit Suisse, Tokyo, and U.S.
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Reuters | 1 day ago
Japan Kan: Govt wants BOJ support to beat deflation
...[ID:nECONJP]) National Strategy Minister Naoto Kan said on Friday the government wants the Bank of Japan's cooperation in fighting deflation. "We want the BOJ to extend support on the monetary policy front in overcoming deflation," Kan,...
In this article: Bank of Japan and Recession
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Reuters | 1 day ago
Japan government says economy back in deflation
...said. The government said from March 2001 to June 2006 that the world's No.2 economy was in deflation, but it did not declare that deflation was beaten given the risk of continuous price falls. The BOJ has forecast three years of core...
In this article: Bank of Japan, Japan, Recession, and Masaaki Shirakawa
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Reuters | 1 day ago
UPDATE 1-BOJ faces heat as govt frets over deflation
...click [ID:nECONJP]) * BOJ to keep rates at 0.1 pct, keep economic recovery view * Upbeat view may draw fire as govt frets over deflation * Kan: Govt will tell BOJ it thinks Japan is in deflation * Rate announcement expected...
In this article: Bank of Japan, Japan, Capital expenditure, Recession, Masaaki Shirakawa, and Organisation for Economic Cooperation and Development
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Telegraph.co.uk - Business | 4 days ago
Core deflation in the US continues to gather pace
...inflation for factory goods in the US fell to minus 0.6pc in October from a year earlier, edging the country closer towards Japanese-style deflation despite massive monetary stimulus. Factory gate inflation typically leads consumer prices...
In this article: Inflation, US, The Fed, Unemployment, and CNBC
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More on Deflation
Description from Wikipedia:
In economics, deflation is a sustained decrease in the general price level of goods and services. Deflation occurs when the annual inflation rate falls below zero percent, resulting in an increase in the real value of money — a negative inflation rate. This should not be confused with disinflation, a slow-down in the inflation rate (i.e. when the inflation decreases, but still remains positive). Inflation reduces the real value of money over time, conversely, deflation increases the real value of money.
Currently, mainstream economists generally believe that deflation is a problem in a modern economy because of the danger of a deflationary spiral. Deflation is also linked with recessions and with the Great Depression. Additionally, deflation also prevents monetary policy from stabilizing the economy because of a mechanism called the liquidity trap. However, historically not all episodes of deflation correspond with periods of poor economic growth.
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