Industrial production fell 3.7 % in May and with consumer prices rising just 0.5 % in June,
concerns about deflation risks in France are increasing.
«However, they are
talking about deflation accelerating a little bit, so clearly any of the bulls on the supermarket stocks that were thinking inflation is coming back is going to be [disappointed].»
In recent times, economists increasingly challenge the old
interpretations about deflation, especially after the 2004 study by economists Andrew Atkeson and Patrick Kehoe, «Deflation and Depression: Is There an Empirical Link?»
His fears resonate mine regarding Deflation Watch Riccardo Ronco, head of technical analysis at Aviate Global speak about Deflation
Since the middle of 2011, I've been
writing about deflation and why that would inevitably bring the market down again.
Furthermore, the news that more and more «economists» are concerned
about deflation rather than inflation leads me to think that an inflationary trend is more likely than not.
In the case of Japan, and in the case of any country
worried about deflation, low rates are the way to go and negative rates are the last - ditch extension of that.
A trigger for this was the release of consumer price data which showed a significant increase for the month of May, reducing market concerns
about deflation.
The European Central Bank is still worried about inflation risks over the medium term, whereas the Fed is more concerned
about deflation, he says.
Alas, this is one of those times in which the articles are not talking
about deflation but about a (further) economic downturn.
Stephen Dover: I find it interesting we're discussing inflation because what's missing is this 10 - year discussion we've had on deflation and the great fear we had
about deflation.
Bernanke, a member of the Fed board at the time, was also concerned
about deflation.
«There was a real serious concern
about deflation,» he said yesterday.