Who Is Afraid Of A Lilliputian Deflation?
Fears of "tipping" into deflation are overblown. I poke a picayune fun at mucilaginous wages, Fed headroom, deflation-induced defaults as well as the long-predicted Keynesian deflationary spiral that never seems to happen, as well as the doom as well as gloom linguistic communication from the ECB, International Monetary Fund as well as other worriers who simply travel on to (of course) desire to pass trillions to cook this latest "biggest economical problem."
One betoken that went yesteryear a picayune equally good speedily inward the involvement of space: Deflation tin dismiss live on a symptom of bad things. The termination is whether deflation is yesteryear itself a bad thing, as well as causes farther damage.
Also, I should convey been clearer on a large bottom line: nosotros don't involve huge "infrastructure" projects simply to relieve us from deflation.
They inquire me non to postal service the whole affair for thirty days, then those of y'all without WSJ access volition simply convey to google or aspect breathlessly.
Update: Ed Leamer wrote a neat like slice for Economists' Voice a spell dorsum "Deflation Dread Disorder; 'The CPI is Falling!'" In improver to a amend title, he's got a cool Godzilla reference as well as picture.
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