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WASHINGTON — The Federal Reserve disclosed on Wednesday that its chief policy makers were divided on whether the weak economy faced a new, potentially dangerous threat in the form of deflation.
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The least accepted variety of deflation remains general price declines.
The main difference to NIPALS is the kind of deflation.
For brands facing an onslaught from the discounters, and from supermarket own labels, the best form of defence against deflation has been premiumisation and innovation".
This finding is consistent with the practice of constructing tables in constant prices by applying (an adapted form of) the double deflation method (see Dietzenbacher and Hoen [1998, 1999]).
In the absence of such a capacity, its fiscal adjustment takes the form of imposing harsh deflations on the member states already most severely hit by the crisis, which carry only the merest pretence of leading to future growth.
So while there is no operational constraint on government because of the electronic printing presses, there is an effective constraint in the form of debt and currency revulsion and price instability (large measures of deflation or inflation).
A number of economists, however, argue that Japan needs more deflation as a form of shock therapy: fewer debts, greater efficiency and a reallocation of labor, they say, is precisely the bitter medicine the economy must swallow.
Joslin is tapping on the brakes, going for a riskless deflation hedge in the form of U.S. Treasury securities and high-quality corporate bonds.
He was a product of deflation.
What is the cause of deflation?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com