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Hence, the ECB's timing occurs at the wrong point in the global oil and commodity cycle: adopting full-blown QE now may amplify deflationary tendencies.
Occupational rents changed against industrial labour and deflationary tendencies emerged.
Therefore, the structural transformation was not growth enhancing, especially in consideration of the deflationary tendencies.
One important source of the deflationary tendencies is the rise of inequality.
This period of structural change inevitably altered the distribution of occupational rents against rural labour, which increased rural-urban inequality and exacerbated the deflationary tendencies of the transformation.
While many of the prominent analyses (Eggertsson and Krugman 2012; Krugman 2009; Reinhart and Rogoff 2009) focus on poor financial regulation, liquidity traps, etc., this paper argues that the housing bubble emerged as a means to paper over the deflationary tendencies of the structural transformation away from manufacturing.
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"The jobs market is not improving, and we are observing a deflationary tendency in the price indices".
Along with many others, I've also raised concerns over what economists call "deflationary bias" in the structure of the Eurozone — that is, the tendency for policies to focus on lower inflation instead of more jobs and growth and to prevent greater public spending as a means to achieve growth.
Economic policy has been relentlessly deflationary.
The result was global deflationary pressure.
We are in a deflationary period.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com