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Outright deflation occurred.
And it raises the risk of outright deflation.
But outright deflation would be much more costly than that.
A stronger currency can be the difference between low inflation and outright deflation.
But with the exceptions of Greece and Switzerland, economists are not expecting outright deflation this year.
We're already closer to outright deflation than at any point since the Great Depression.
If the housing and consumer bubbles pop, then the risk of outright deflation will only increase.
The last thing that the euro zone needs after everything else it has endured is to slip into outright deflation.
Nothing about our current situation, except maybe the absence of outright deflation, is at all surprising or mysterious.
At very low inflation rates he Fed will have less room to raise interest rates without triggering outright deflation.
If German inflation is much lower, the adjustment could require years of outright deflation in the periphery.
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