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Lower prices may be manna to consumers, but they can cause economists to break out in cold sweats. Their fear: that one big D (deflation) will lead to another (depression).
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The point is that deflation should - or so we thought - be easy to prevent: just print more money. And printing money is normally a pleasant experience for governments. In fact, the idea that governments have a hard time keeping their hands off the printing press has long been a staple of political economy;
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Deflation - Wikipedia, the free encyclopedia
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the annual inflation rate falls below zero percent (a negative inflation rate), resultin...
en.wikipedia.org/wiki/Deflation
[dĭ-flā́shən]
(n.)The act of deflating or the condition of being deflated.
(n.)A persistent decrease in the level of consumer prices or a persistent…
(n.)The erosion of soil by the wind.
Dictionary.com · The American Heritage® Dictionary · See all 3 definitions »
Deflation and Printing Money: Is the problem that there is more to printing money than printing money? Is in fact the way printed money gets into circulation, that the fed buys bonds, and thus get money into the economy? ... Q: There is currently talk in the media about the possibility of deflation. I think I understand...
economics.about.com/cs/inflation/a/deflation.htm economics.about.com/cs/inflation/a/deflation.htm · Cached
So, is deflation a threat to the economic health of the United States? Not to leave you in suspense, I believe that the chance of significant deflation in the United States in the foreseeable future is extremely small, for two principal reasons.
www.federalreserve.gov/boarddocs/speeches/2002/20021121... www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm · Cached
After years of rising investment prices and declining spending power, a new worry has snuck its way back into the minds of investors: deflation. ... To show you just what Prechter's deflation forecast was up against, consider this: Experts from all schools of the economics profession said deflation was "utter nonsense,"
www.elliottwave.com/deflation/ www.elliottwave.com/deflation/ · Cached
What is deflation and how is it different from disinflation? How long a period must the general price level fall before it would be called a deflation? What are the main causes of a deflation? ... Deflation, inflation, and disinflation represent different behavior of the price level. The price level is commonly measured...
www.frbsf.org/education/activities/drecon/1999/9909.htm... www.frbsf.org/education/activities/drecon/1999/9909.html · Cached
deflation - definition of deflation - A decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct... ... Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending,
www.investorwords.com/1376/deflation.html www.investorwords.com/1376/deflation.html · Cached
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