Fears of "tipping" into deflation are overblown. I poke a footling fun at pasty wages, Fed headroom, deflation-induced defaults together with the long-predicted Keynesian deflationary spiral that never seems to happen, together with the doom together with gloom linguistic communication from the ECB, International Monetary Fund together with other worriers who merely order off to (of course) desire to pass trillions to produce this latest "biggest economical problem."
One indicate that went yesteryear a footling likewise speedily inwards the involvement of space: Deflation tin move a symptom of bad things. The lawsuit is whether deflation is yesteryear itself a bad thing, together with causes farther damage.
Also, I should convey been clearer on a large bottom line: nosotros don't remove huge "infrastructure" projects merely to relieve us from deflation.
They inquire me non to postal service the whole affair for thirty days, together with thus those of yous without WSJ access volition merely convey to google or await breathlessly.
Update: Ed Leamer wrote a non bad similar slice for Economists' Voice a spell dorsum "Deflation Dread Disorder; 'The CPI is Falling!'" In add-on to a amend title, he's got a cool Godzilla reference together with picture.
