In an economy with a deflationary bias, interest rates may stay low for years to come. |
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Many people believe that the world economy is undergoing pressures of a deflationary nature. |
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Many deflationists argue that Germany will follow Japan into a deflationary spiral. |
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The entry of emerging market economies into the global trading system is a powerful deflationary force. |
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Krugman caught my notice for being one guy with a really nervy suggestion on how Japan could get out of its deflationary spiral. |
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The deflationary spiral under the long-wave Kondratiev cycle is far from over, in spite of appearances. |
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Washington clung doggedly to the gold standard despite the disastrously deflationary effect of this policy. |
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The essential problem is that as fast as bad debts are written off new ones are created by the deflationary contraction in the economy. |
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He has been able to goose up the money supply without suffering serious price inflation, due to various underlying deflationary trends. |
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After almost 15 years in the economic doghouse, Japan shows real signs of emerging from its long deflationary slump. |
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He argues that financial bubbles can lead to economic instability, with hard-to-control deflationary consequences. |
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Volatile movements in the foreign exchange casino compound the deflationary effect. |
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Speculative onslaughts on the pound were resisted only at the expense of deflationary domestic policies. |
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A falling dollar would be a major deflationary influence on the world economy, notes Levy. |
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But such reforms and restructurings are very deflationary in highly indebted economies. |
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Another more speculative concern is that it could increase the vulnerability of the economy to deflationary forces. |
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The overall effect is a rise in unemployment and intensifying deflationary pressures. |
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Fear of the equity markets, and the addiction to saving, can propel a country into a vicious downward deflationary spiral. |
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All of this can exacerbate an economic downturn and, in turn, generate greater deflationary pressures. |
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Money supply would have then expanded, and deflationary forces would have been thwarted. |
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That kind of deflationary spiral is what worries economists and corporate executives. |
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In a deflationary environment a good growth stock can often be a defensive stock. |
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The overall effect, therefore, will be to generate a stronger deflationary undertow. |
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In much of Africa and Latin America, adjustment was combined with deflationary stabilization. |
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By dampening expected future sales, a deflationary monetary policy may decrease the firm's net worth. |
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The Great Depression was a deflationary cycle, and it took WWII to get out of that. |
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There are always inflationary and deflationary spots in an economy at the same time. |
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These two bankruptcies led to intensifying deflationary pressures. |
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You might think that in a deflationary world, companies and consumers alike might give up their fixation with brands, and be more interested in price instead. |
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If we went in at too high a rate, we could face permanent deflationary pressure, taking the fizz out of what is currently the most buoyant large economy in Europe. |
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The banks are stuffed with cash that they can't lend because few borrowers are creditworthy, and those that are won't borrow in a deflationary economy. |
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To condition expectations against deflationary shocks, policy should overcorrect such shocks so that the price level eventually increases. |
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The GDP deflator, an overall price index, fell 3.5 percent from a year earlier, the sharpest ever drop, adding to the deflationary problems dominating the Japanese economy. |
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We do not presently perceive any deflationary risks in the euro area. |
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So a deflationary view of the eternality of Cartesian eternal truths might be in order. |
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With hindsight, the decrease in US yields in the fourth quarter of 2008 may be considered as having priced in excessive deflationary concerns. |
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Some hold that a deflationary policy, if pushed hard enough, will infallibly slow up price increases and so help the country's external balance. |
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Growth in Japan is expected to strengthen, with deflationary pressures gradually subsiding, and the unemployment rate improving. |
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There is a lot of sympathy in our group for those countries that decry the deflationary pressures of the Stability and Growth Pact. |
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Long-term interest rates will be caught in a tug of war between lingering deflationary forces and a sluggish growth recovery. |
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To conclude, the sudden entry into a deflationary economic climate will not necessarily usher in a golden age for bond management. |
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A deflationary mentality could take root, which would be very difficult to break. |
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Some deflationary trends persist, but we are watching this tug-of-war closely. |
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Mrs Merkel has much to answer for when it comes to running a large current-account surplus and imparting a deflationary bias to the euro zone. |
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Some Fed officials might even be willing to wait to tighten until inflation ticks up and moves the economy well clear of the deflationary danger zone. |
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Another is how to protect the economy from a deflationary shock. |
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At the moment, the latter forces appear to be stalemated, with endogenous deflationary tendencies offset by monetary and fiscal stimulus. |
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We have recessional and deflationary trends, characterised by the Commission's growing pressure to make savings. |
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Evidently the Bank of England's monetary policy committee is not convinced that such a deflationary spiral is upon us, at least not in Britain. |
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So far from boosting confidence and animal spirits with his deflationary budget of June 2010, Osborne depressed them. |
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Whether it proves deflationary in the strict sense depends on whether it sets off a downward spiral in prices. |
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We believe it waited too long to recognize the deflationary nature of the credit crisis. |
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Just as there is inflationary stability, there can also be deflationary stability. |
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They revealed that Fed members discussed inflation targeting as a measure to prevent deflationary expectations. |
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And indirectly, because, with expectations firmly anchored, the risk of a deflationary spiral has been considerably reduced. |
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The U. S., through the bailout plan, needs to combat serious credit tightening and deflationary forces. |
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From then onwards, sharp declines ushered in the new recessionary and deflationary phase of the international crisis. |
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This overinvestment of course maintains deflationary pressures, and these could intensify as world consumption slows. |
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Performance in Japan was negatively impacted by general weakness in the economy and on-going deflationary pressures. |
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The risk on the other side is serious inflationary pressures down the road, but not a worry today in the midst of deflationary pressures. |
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Nowadays, in a durably deflationary world, the game is different. |
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This in short is a highly deflationary Budget, which, far from promoting growth, would only contribute to a perpetuation and accentuation of the prevailing demand constraint. |
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But, as I explained here and especially here, the stock market is bucking some fairly powerful deflationary currents, in both the the U.S. and the global economies. |
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He also said the Japanese economy is not about to fall into a deflationary spiral under which price falls and economic contraction take place simultaneously. |
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Bearing in mind the old saying that one swallow does not make a summer, the statistic nevertheless does point to the danger of a deflationary downturn in the US economy. |
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While many feel inflation has been all but drowned out by media reports of deflationary pressures, some believe that a higher than expected rate of inflation may signal a bit of improvement in the European economy. |
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But actually, of course, that's a lot of deflationary posturing to level an opinion that finally confirms art-world consensus. |
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After many false starts, at least Japan appears finally to be escaping two decades bogged down in a deflationary quagmire. |
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Globally, the main hazards are embodied in the rising geopolitical tensions and continued deflationary pressures associated with the protracted decline in equity prices. |
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Major governments, which only a short time ago were working in a co-ordinated fashion to foster a nascent economic recovery, seem to be falling into a deflationary policy track. |
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It is for this reason, in order to prevent these deleveraging efforts from triggering a deflationary spiral, that governments had to take the reins and were forced to swell their own national debts. |
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The most common cause of inflationary or deflationary phases is when aggregate demand for goods and services does not move in line with the economy's production capacity. |
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The deflationary period from 2002 to the first half of 2004 was largely due to external factors and increased competition in some domestic markets. |
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By doing so, it would choose to conduct an accommodating monetary policy, in that it is de facto opposed to the deflationary pressures that spontaneously result from an acceleration in productivity. |
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Because Canada has a floating exchange rate, much of the adjustment has taken place through a decline in the external value of the Canadian dollar, rather than through deflationary pressure on output, employment, and wages. |
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However, the deterioration of the GDP deflator in the first quarter showed that deflationary pressures remain strong. |
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However, as central bank tightening would likely be restrained, we would expect equity markets to outperform bond markets in this scenario as deflationary fears fade. |
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Targeting an inflation rate that is too low could therefore create an unintended deflationary bias and move the economy away from true price stability. |
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Macroeconomic problems consisted of both inflationary and deflationary impacts. |
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Consequently, rural or remote areas, which are already in danger of becoming economic deserts, will suffer a competitive disadvantage which will plunge them into the deflationary spiral. |
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It attributed deflationary spirals to the reverse effect of a failure of a central bank to support the money supply during a liquidity crunch. |
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Banks built up their capital reserves and made fewer loans, which intensified deflationary pressures. |
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But lower housing prices are not a certainty and in the context of very stimulative monetary policy and rising commodity prices, we think fears of a deflationary outcome are overblown. |
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In a bid to fire up the Canadian economy, the Bank of Canada also cut interest rates this week. But a weaker currency is not necessarily hard to swallow: it can help beef up exports and quench deflationary pressures. |
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I do wonder if such wholesomely deflationary logic can avail with paintings, which are objects of a historically replete, stubbornly sensitive character. |
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The replications that failed did so in the presence of significantly deflationary shocks. b. Most of these simulations did not converge so the results are not reported. |
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In Japan, official government policy was deflationary and the opposite of Keynesian spending. |
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The report welcomes the fact the ECB does not interpret its responsibility for stability policy one-sidedly, but that, in addition to inflation, it also monitors deflationary tendencies. |
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The problem lies, rather, in the fact that in a deflationary situation, we may find ourselves with a very high real interest rate if expectations about price fluctuations are extrapolative. |
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The Bank of Greece tried to adopt deflationary policies to stave off the crises that were going on in other countries, but these largely failed. |
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Yet the constraint of the zero lower bound suggests that there is, because deflationary pressure in one economy propagates thanks to insufficient monetary response. |
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We should not forget the partly temporary nature of the deflationary effects associated with the emergence of the new economy: the lag of real wages in relation to productivity would indeed be temporary. |
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Consider: when the oil price doubled in the 1970s it was both deflationary, in that it removed purchasing power from consumers, and inflationary, in that it pushed prices up. |
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Allotment on hire-purchase basis would also instil a habit of fore-saving and set in deflationary tendencies in the economy. |
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Monetary authorities will need to keep the liquidity taps wide open to fight deflationary pressures and provide an offset to fiscal tightening efforts. |
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Given that Japan is said to be in danger of falling into a deflationary spiral, I think that's an important proposal,'' Yamasaki told foreign journalists. |
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A credit crunch lowers investment and consumption and results in declining aggregate demand which additionally contributes to the deflationary spiral. |
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These lunettes are relicts of a Late Pleistocene deflationary period, when the lacustrine hydrology changed from perennial water-filled lakes to dessicated mudflats. |
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Somewhat surprisingly to some, not so much to others, the amount of quantitative easing had no discernable effect on deflation or deflationary expectations. |
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Recent work on natural kind essentialism has taken a deflationary turn. |
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These measures were deflationary and merely reduced purchasing power in the economy, worsening the situation, and by the end of 1931 unemployment had reached nearly 3 million. |
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