You are confusing two types of deflation: one is monetary deflation, in which the stock of money falls.
Every action that people would logically take in their rational self-interest to protect themselves from deflation would just make the deflation worse.
See The Deflation Question for more on deflation from John Mauldin.
We will look at some of the causes of deflation, the elements of deflation, if you will, and see if they are in ascendancy.
Deflation is actually a good thing, because in a deflation prices drop and money becomes more valuable, so deflation encourages people to save money.
If driving rates down to zero was, above all, a measure to combat deflation, the policy should be abandoned only when the threat of deflation is lifted.
By the central bank's reckoning, official figures understate deflation by up to one percentage point, which suggests that Japan is suffering a persistent consumer-price deflation of perhaps 1-2%.
The deflation that you are speaking of is monetary deflation.
") The commentary from the Fed's members have indicated central bankers have been far more concerned about deflation now than inflation later. (See "Fed Keeps Focus On Deflation.
In a serious bout of deflation, a central bank acting alone may fail to halt deflation, but if a central bank and government act jointly they will surely succeed.
During the company's conference call, management said that deflation affected first-quarter perishables by 0.5% to 1%, adding that deflation is expected to continue through the second quarter, according to TradeTheNews.com.
The United States last suffered serious deflation during the Great Depression of the 1930s but Fed policymakers worry more about the threat of deflation any time prices go lower than 2 percent.
And for those who wish to avoid both inflation and deflation, what about a digital currency programmed to maintain stable prices, avoiding mischief by central bankers as well as the possibility of deflation?
WSJ: The Weekend Interview With Gavin Andresen: Bitcoin vs. Ben Bernanke
But afraid of a deflation that is quite simply not deflation, the Fed will use all of its powers to prop up the housing and mortgage assets that necessarily need to fall in order for a recovery to take shape.
If the U.S. gets into outright deflation, I expect the Fed to react by increasing their assets and by outright monetization, buying treasuries from insurance and other companies, as putting more money into banks when they are not lending does not seem to be helpful as far as deflation is concerned.
He made a wisecrack about dealing with deflation, if necessary, by dropping dollar bills from aircraft.
Once Mr. Bernanke assents to the double-dip recession scenario, he will fight deflation by any means necessary.
Chairman Alan Greenspan and the chairman-to-be, Ben S. Bernanke, said they were fighting an anticipatory battle against deflation.
Smith is confident gold is a proxy for deflation and could be meaningfully higher.
But the real threat to us and to the rest of the world is dollar deflation.
There are presently mixed views on whether inflation or deflation will be the ultimate outcome.
FORBES: INTERVIEW: Thomson Reuters GFMS: Silver Could Reclaim $30/Oz In 2013
It welcomed recent policy changes by Japanese authorities aimed at tackling deflation and boosting growth.
Since 1978, the CPI has been the go-to index to measure inflation or deflation.
WSJ: Refiguring Inflation With 'Chained CPI' Will Hit Retirees' Income
The way out of deflation and stagnation is free markets and regulation, not easier money.
FORBES: More than Easier Money, Japan Needs Deregulation. Some Hope Seen in Aviation
Hayek pointed out that central bankers had often defended their policies as necessary to prevent deflation.
FORBES: Cutting Old Age Entitlements: Why Japan Can Lead the Way
He has certainly convinced the financial markets that Japan will finally break its deflation habit.
Across the Pacific, many have blamed Japan's central bankers for being too half-hearted about tackling deflation.
The prevailing rule of thumb is that deflation, not inflation, is the dreaded external reality.
For the moment, they have allowed the market forces of deflation to take hold.
News of the duck's deflation was splashed across Hong Kong media and social networks.
应用推荐