Sentences with phrase «global deflation»
"Global deflation" refers to a situation where prices of goods and services decrease over time on a global scale. This means that the cost of items people buy, like groceries or electronics, gradually gets cheaper rather than more expensive. It can happen due to factors like reduced consumer spending or excess supply. Full definition
Moreover, thanks to its rising labor costs, China has alleviated the pressure from global deflation.
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We believe global deflation fears are misguided.
The key message from escalating trade tensions is that one of the key drivers of global deflation is now going into reverse.
According to new research on the role of the U.S. dollar from Harvard, cited by Fed Vice Chairman Stanley Fischer, the U.S. economy is fairly insulated from foreign inflation / deflation pressures via exchange rates, implying that policymakers should be less worried about global deflation pressures.
One final point concerns the impact of China's devaluation on global deflation.
Obviously, global deflation seems the current issue.....
But maybe the problem here isn't the Fed but that markets are slowly but surely pricing in global deflation, which would explain why asset allocators are shifting out of risk assets into safe haven assets.
China has a bigger credit crisis than its last one, leading to drops in commodity prices, and further global deflation.
At the same time, with risks to the global economy and markets looming (think Brexit, global deflation fears, China devaluation, etc...), risk - off sentiment could also reassert itself as a driver of dollar strength.
This rise partly reversed earlier declines, which had reflected a number of factors: the expected negative impact of the Asian situation on the local economy, associated concerns about the possibility of global deflation, and the projected fall in the stock of bonds on issue reflecting the expected run of Budget surpluses and the proposed sale of the remainder of Telstra.
More importantly, real economic activity and employment have been supported, and a global deflation / depression has been avoided.
A real depreciation, say 10 percent or more, would stimulate exports and add to global deflation.
That index is now roughly 10 per cent above its mid-2014 highs — thereby completely erasing the impact from the global deflation sell - off that occurred three years ago.
I don't know but it's way too early to conclude that global deflation has become fully entrenched and that the U.S. is heading the way of Japan.