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The United States risks a double-dip recession, and possibly even an era of deflation, and Europe's debt crisis continues to nag.
TOKYO — Haruhiko Kuroda, the new governor of the Bank of Japan, delivered on his promise to drastically change Japan's economic policy to end a long, debilitating era of deflation.
Undeterred by the fact that the very next article in the magazine sounds the alarm about a growing shortage of workers and hence rising wage costs in America, the authors conclude that "the global economy may well be heading into a new era an era of deflation".
No one in political and financial circles will ever let the BoJ forget how it raised the key rate in 2000 from zero to 0.25%—only to lower it again six months later when the increase made deflation even worse.The central bank is also sensitive to criticism that this summer it prematurely announced the end of Japan's debilitating era of deflation.
In an era of deflation, your wages might even go down.
Yet it was an era of deflation, with wholesale prices falling a cumulative 46%.
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Today's new technology will sire another era of good deflation.
This will mean an era of grade deflation, fewer students will get the top marks.
And the pension gap will widen if, as I forecast, we enter an era of mild deflation, low interest rates and depressed equity returns.
And in an era of food deflation, hyper-competition on price and the growth of own-brand ranges which tend to be cheaper, the value of sales is falling across the sector.
If the era of Chinese-led deflation has ended, the implications may be unfortunate for consumers, as the price of necessities rises even as the American economy continues to struggle along in a slow recovery from the recession of 2007 to 2009.
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CEO of Professional Science Editing for Scientists @ prosciediting.com