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Exact(42)
(In a deflationary environment, cash also has its merits).
In today's deflationary environment, the reverse has happened.
"TIPS could hit a few bumps in the road if we enter a deflationary environment," he said.
Not only are banks reluctant to lend, but overindebted firms are loth to borrow in a deflationary environment.
"Reserve shortfalls tend to grow in a deflationary environment, which Japan has experienced for a long time.
In a deflationary environment, a debt-ridden company would have to pay back obligations with increasingly valuable dollars.
Similar(18)
This was partly because Japan's past mistakes could hold lessons for policymakers in deflationary environments elsewhere.
Lloyd believes high-quality corporate and municipal bonds perform well in deflationary environments, and is a fan of large cash-flow-positive firms.
It is obvious that if you want to deal with sluggish growth and large debt burdens, a deflationary economic environment is the last thing you want.
If you're worried (as I am) about the persistence of a weak and potentially deflationary economic environment, then you should be critical of the Treasury's policy.
Those who see a modestly higher path for gold said US dollar pressure may wane in the coming months, while others say the general deflationary commodity environment is negative for gold prices.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com