Throughout the 2000s until very recently,
we worried about deflation.
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.
There is no indication the Bank of Canada need
worry about deflation.
Not exact matches
The sharp jump in debt yields in tandem was mirrored by a rally in commodity prices, which suggests that investors are becoming less
worried about the risks of
deflation.
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.
As the Fed tapers, many observers
worry about the effect on the stock market, while others are
worried about the risk of inflation or
deflation and everybody is
worried about the effect of higher interest rates on economic growth and for the bond market.
The European Union reported that consumer prices fell 0.2 percent, raising
worries about the threat of a Japanese - style
deflation.
Central bankers
worry about inflation falling too low because it raises the risk of
deflation, or generally falling prices, a phenomenon that is difficult to combat through monetary policy.
In fact, inflation at
about 1.5 % is below the Fed's target and
deflation is seen by some analysts as a larger
worry for 2014.
The
worry should be
about excessive inflation or hyperinflation and the opposite,
deflation.
Smaller credit spreads suggest more investor confidence in the economy and, presumably, less
worry about disaster scenarios that might include
deflation.