Deflation
Economic Issue
Rise in interest rates 'off the radar screen' for now...about consumer prices falling at the second fastest rate in the euro area after Ireland. "Deflation in the euro area would be a disaster. But, if you don't have deflation in the euro area, and we have a negative inflation differential... In this article: Deflation, Spain, Inflation, Bank of Spain, Financial Times, Europe, and Ireland |
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Guardian | 7 days ago
Ireland's sense of play-offs injustice continues David Hytner
...Anelka took aim, there appeared little on. Cue a brutal deflection off Sean St Ledger, a ricochet off the post and the sense of deflation that always comes with the away goal on these occasions. Ireland will draw inspiration from the...
In this article: France, Republic of Ireland, Nicolas Anelka, Giovanni Trapattoni, Damien Duff, Patrick Vieira, Raymond Domenech, and 1998 World Cup
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Independent.ie | November 04, 2009
Ireland downgraded by Fitch to worst level yet in recession
It reached 284 basis points in March. Fitch added yesterday that Ireland's membership of the euro area and its open economy mitigate the risk of deflation becoming entrenched over the medium term. It expects the economy will resume a...
In this article: Fitch, Ireland, Recession, Government, Revenue, Standard & Poor's, and European Union
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Times Online | July 09, 2009
Ireland plunges deeper into deflation
Ireland plunges deeper into deflation Navigation - link to other main sections from here Ireland sunk further into deflation in June as the cost of living fell at the fastest rate since the Great Depression, raising the prospect of a...
In this article: Ireland, Cost of living, Recession, and Inflation
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Independent.ie | November 05, 2009
In Brief: Wacky . . . Quango . . . Quality of life . . . Tolls
...standards for years to come, can I expect a slow return to that former Ireland? I was wondering whether, as the country is experiencing a period of sustained deflation, we hard-pressed drivers can now expect a reduction in toll-road fees?
In this article: Ireland
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Telegraph.co.uk - Business | October 05, 2009
Euro is Ireland's lifejacket - and straitjacket
...Ireland is stuck with the super-dear euro. Ireland's recession, deflation and budgetary deterioration resemble the Baltics' agony because like them Ireland is locked into a fixed exchange rate. "At least we are not Iceland" is the Irish...
In this article: Ireland, Recession, Europe, EU, Lisbon, Ireland, and Iceland
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Independent.ie | October 10, 2009
Prices are falling, why aren't we happy?
...it is very difficult to get the medicine just right. A few months ago, Nobel Prize-winning economist Paul Krugman warned that Ireland's economy could suffer a "long, slow grinding deflation". That would mean a protracted period of painful...
In this article: Cost of living, Goods and services, Inflation, Ireland, Tax, Economists, and Paul Krugman
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Miami Herald | September 02, 2009
Irish unemployment hits 14-year high of 12.4 pct
...biggest drop since 1933 Ireland is suffering the heaviest rate of deflation since 1933 as prices have fallen 5.4 percent over the past year, the government's Central Statistics Office reported this week. The average cost of goods and...
In this article: Ireland, Department of Finance, Recession, Allied Irish Banks, Bank of Ireland, Luiz Inacio Lula da Silva, Unemployment, Beijing, and China
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Telegraph.co.uk - Business | October 19, 2009
Irish house prices to fall 45pc as debt spiral looms
...impeding recovery. Price deflation reached 6.5pc September, steeper than during the Great Depression, raising concerns that Ireland is now in a classic debt deflation trap as described by the US economist Irving Fisher. The average Irish...
In this article: Ireland, Fitch, Tax, Unemployment, Inflation, Irving Fisher, International Monetary Fund, and EU
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Telegraph.co.uk - International news | September 17, 2009
The Euro: why Britain is still better off out
...the downturn and manage the highest household debt burden in history. Britain would now be facing the sort of debt-deflation spiral under way in Ireland and Spain. By keeping its freedom of action, Britain has been able to launch...
In this article: Britain, Bank of England, Northern Rock, Club Med, Lehman Brothers, AIG, Gordon Brown, Frankfurt, and London
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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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