report explains, the most important reason to fear deflation is that it can push an economy into a liquidity trap, or deepen the distress of an economy already caught in the trap.
In it, he says that "the UK is not experiencing deflation" and that the "most important single reason for below-target inflation over the past year is the unexpected recent sharp drop in energy prices".
OF THE many things that are worrying investors around the world, from tumbling oil prices to the spectre of recession and deflation in Europe, one of the most important, and least understood, is China's debt.
So, if we admit that the limited multilateral escape route is too difficult to pursue, we will be left with a world buffeted by the forces of deflation, nascent protectionism, imbalances and, perhaps most important right now, a huge loss of confidence and the all-encompassing fear that further decline is inevitable.
Most important, it can try to manage expectations and assure markets that it will do whatever it takes to avoid prolonged deflation.
Perhaps most important, because of actual price declines and the rapid decline in the money supply, consumers and businesspeople came to expect deflation; that is, they expected wages and prices to be lower in the future.
Your most important job".
The most important element?
Most important is safety.
The single most important".
