Sentences with phrase «deflationary spiral»
A deflationary spiral is when prices and wages decrease in an economy, causing people to delay their purchases in the hope that prices will fall further. This reduces demand even more and leads to further price decreases, creating a vicious cycle that can harm the overall economy. Full definition
But economists worry that the commodity mess reflects a weakening global economy, lowering the value of trade worldwide and perhaps even pushing some countries into the same kind of deflationary spiral that has hampered the Japanese economy for decades.
nytimes.com
meaning a wage - price deflationary spiral becomes a significant possibility — especially with an implacable austerity faction in control of one House of Congress.
This will lead to a serious deflationary spiral.
The wholesale sector, meanwhile, stayed entrenched in a deflationary spiral — the producer price index (PPI) fell 2.2 percent on year in October, worse than the 2 percent decline forecast and following the drop of 1.8 percent the month before.
Weak growth and deepening concern that plunging oil prices may send the euro zone into a deflationary spiral that will push the ECB to buy sovereign debt early next year, a Reuters poll found last week.
Arguably more concerning is the fact that these dropping oil prices indicate a slowing global economy, and that we are potentially already in a deflationary spiral and admit no wit or wisdom to get out.
It is important to realize that QE was an emergency measure used to stimulate the economy and prevent it from tumbling into a deflationary spiral.
If markets believe that the threat of a deflationary spiral is mitigated by a recovery in demand, profits and tax revenues, many risk premia will compress.
A 500 billion - euro purchase program would take the ECB halfway toward its goal of boosting its balance sheet to avert a deflationary spiral in the euro area.
A government can also spend more or cut taxes if a country has already dipped into a deflationary spiral.
Ain't no deflationary spiral there fuctard.
The credit crunch, deflationary spirals and short selling have become everyday parts not only of political, but also public, discussions.
Even though the deflationary spiral of wages and costs may help these companies reduce cost, the shrinking of their revenue will take out their power to repay their debt (the author has a valid point)-- which in turn increases the spiral of bankruptcy and contraction.
People fear that the hoarding of bitcoins will lead to a deflationary spiral.
From Bitcoin Wiki; «A deflationary spiral occurs when the value of a currency, relative to the goods in an economy, increases continually as a result of hoarding.