Is deflation the real threat to our economy?

Filed under: Analyst reports, Forecasts, Products and services, Consumer experience, Money and Finance Today, Economic data, Personal finance, Recession

Don't be confused by the rhetoric you read and see in the media. We are definitely in a deflationary spiral. Who says so? And what data are you looking at?

Let's read a few quotes from leading traders and analysts:

• Nobel laureate Joseph Stiglitz said: "Deflation is definitely a threat right now."


• Charles Evans, Federal Reserve bank president says: "Disinflationary winds are blowing with gale force effect."


• Bill Gross of Pimco said: The potential for a deflationary downdraft continues for several years" if growth does not accelerate.


• Former Fed Chairman, Alan Greenspan, said: "We are still, by any measure, in a disinflationary environment."


• Yellen states: "My personal belief is that the more significant threat to price stability over the next several years stems from the disinflationary forces unleashed by the enormous slack in the economy."

What are the data to support the notion of deflation in our economy?

Continue reading Is deflation the real threat to our economy?

Is deflation the real threat to our economy? originally appeared on BloggingStocks on Fri, 02 Oct 2009 18:00:00 EST. Please see our terms for use of feeds.

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