Some economists worry that the rate of deflation used in the national accounts may be overstated.

ECONOMIST: It is too early to celebrate economic recovery in Japan

For instance, the rate of deflation in capital goods has deepened, with prices falling by 6.9% in the year to the second quarter.

ECONOMIST: It is too early to celebrate economic recovery in Japan

It would oblige Argentina to continue trying to adjust its real exchange rate by deflation (cutting nominal wages and prices in nominal terms), a process which has already forced the collapse of many businesses.

ECONOMIST: Struggling on | The