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We aren't literally suffering deflation (yet).
He brushes this aside saying that we have not got to deflation yet.
If Japan is confronting the ghost of deflation past, the euro zone is spooked by deflation yet to come.
As John Shepperd of Dresdner Kleinwort Wasserstein said last week, the Fed is insisting that the US should be safe from deflation yet is prepared to act to make sure that it is right.
Or to put it another way, there is not endemic deflation yet in the eurozone.
Similar(52)
But price and income growth remains too weak to banish entirely the fear that deflation might yet take hold.
As emerging economies slow down, sucking demand out of the global economy and depressing commodity prices, what Albert Edwards of investment bank Société Générale has called a "tidal wave of deflation" could yet be unleashed.
But countries in southern Europe do suffer from lack of aggregate demand, and for the past 60 years we have been teaching that demand shortfalls should be dealt with expansionary macroeconomic policies.The euro zone is flirting with deflation and yet there are members of the ECB board who oppose a more aggressive policy stance.
Yet deflation for the UK would be unchartered territory.
Deflation has not yet been defeated: consumer prices fell by 0.4% in the year to December.
Yet deflation has not vanished: Core consumer prices fell 0.5percentt in July.
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