Sentence examples for through deflation from inspiring English sources
It proceeded to pursue a policy of harsh fiscal austerity — primary surpluses around 7 percent of GDP — and internal devaluation through deflation.
The rigidity of the currency board, which rules out both devaluation and independent monetary policy, has meant that Argentina has had to adjust to a tougher world through deflation.
Even in Keynesian models, a small open economy can, in the long run, restore full employment through deflation and internal devaluation; the point, however, is that it involves many years of suffering — in the long run we are all dead.
Having your own currency raises transaction costs and makes business more difficult; but giving up your own currency means that you have to adjust to overvaluation through deflation, which is much more costly than devaluation.
To improve their cost competitiveness, these countries must either leave the euro area and re-adopt their own currency, or slowly and painfully force down real costs through deflation.
The question you should ask, however, is how this might have been avoided; and in particular, whether a "Latvian" solution — clinging grimly to a fixed exchange rate, and trying to regain competitiveness through deflation — would have been any better.
They can restore competitiveness only through domestic deflation, not devaluation, and reduce debt only through austerity, not inflation.
At present, the rules mean that any struggling country can only make itself more competitive through internal deflation – cost cutting and austerity.
"If [the lack of spending caused by tax rises] continues, the market is going to go through a deflation cycle and eventually will collapse," said Yuki Okada.
But, with Germany adamant about inflation – its prices have been stagnant – the adjustment could be accomplished only through wrenching deflation elsewhere.
The real price of gold "wants" to rise; if you try to peg the nominal price level to gold, that can only happen through severe deflation.
