Deflation: The Central Bank Bogeyman
|
|
|
|
Ahead of the Federal Reserve’s big day today, via this item
at the WSJ Real Time Economics blog, it is learned that the Bank for
International Settlements has questioned the conventional wisdom amongst the
dismal set that deflation is such a bad thing. From their recently published
quarterly review
comes the graphic below demonstrating such.
The report concludes that, save for the Great Depression, there is little
or no correlation between falling consumer prices and economic growth,
however, falling asset prices are entirely different and, sadly, in our asset
bubble dependent global economic growth model, this kind of trumps everything
else.
| |
La rédaction vous conseille :
| Publication de commentaires terminée |