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The research focuses on falling goods prices.
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But the fear is that Chinese overinvestment will lead, not just to falling commodity prices, but to falls in the prices of goods in general.
For many countries, falling consumer goods prices have been triggered by the movement of manufacturing to China and other low-cost locations not just by central bank actions on interest rates.
Domestic final goods prices fell 1.7percentt.
Look carefully, says Richard Berner of Morgan Stanley, and you will see even broader evidence that goods prices are falling more slowly and that some services prices are rising more quickly than before.In this section Pain at the pump Time to worry, Mr Greenspan?
It is up to the Fed to provide sufficient liquidity to keep durable goods prices from falling.
The gold standard exacerbated the downward pressure on prices: With a fixed supply of money and an ever-increasing supply of goods, prices naturally fell.
"There is the worry that uncertainty will feed through into decisions to hold off investment, higher prices of imported goods, falling house prices and the higher costs of a summer holiday abroad to stifle consumer spending.
And, as in recent months, falling oil prices (good for consumers) have been accompanied by rising bond yields (bad).The linkage goes further.
The downside for stocks, however, is that falling prices for goods eventually squeeze profits, thus putting downward pressure on stock prices.
And their impact on inflation has been offset by falling prices of goods exported by emerging economies.
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