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| | Deflation (economics): Just the facts... |
 | | Deflation is generally regarded negatively, as it is a tax on borrowers and on holders of illiquid assets, which accrues to the benefit of holders of liquid assets and currency. | | | Deflation should not be confused with disinflation (A reduction of prices intended to improve the balance of payments) which is a slowing in the rate of inflation, that is, the general level of prices are increasing at a decreasing rate. | | | In economics (The branch of social science that deals with the production and distribution and consumption of goods and services and their management), deflation is a decrease in the general price level, or a rise in the purchasing power of money with respect to a large class of goods or services. |
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http://www.absoluteastronomy.com/encyclopedia/d/de/deflation_(economics).htm
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| | EH.Net Encyclopedia: Deflation |
| | Deflation is a persistent fall in some generally followed aggregate indicator of price movements, such as the consumer price index or the GDP deflator. | | | However, it is also clear that deflation need not always be associated either with a currency crisis or a banking crisis. | | | Others, such as Keynes, also worried about the impact of deflation on aggregate demand in the economy, as individuals and firms postpone their purchases in the hopes of purchasing durable goods especially at lower future prices. |
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http://eh.net/encyclopedia/article/siklos.deflation
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| | [No title] |
| | Deflation and the government sector Government debt is also important in a deflationary environment, and can exert important positive effects. | | | Deflation increases money demand, which shifts the LM to the left, resulting in a new equilibrium in which the gap between the nominal and real interest rates is equal to the rate of deflation. | | | The impact of deflation on the household sector debtors With regard to household debtors and creditors, the specification of the consumption function is critical. |
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http://www.newschool.edu/cepa/originalsite/papers/workshop/palley_200402.doc
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| | Marco Island Sun Times - Local News - 06/09/2005 - Economics 101: Deflation and you |
| | Deflation requires a precondition a major societal buildup in the extension of credit and the assumption of debt (this is according to basic Economics 101, straight from college textbooks). | | | The pricing effects of both inflation and deflation are simply relative to the value of, or purchasing power of money. | | | Deflation involves a substantial amount of involuntary debt liquidation because almost no one expects deflation before it starts. |
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http://www.zwire.com/site/news.cfm?BRD=2256&dept_id=457707&newsid=14658520&PAG=461&rfi=9
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| | The Imaginary Evils of Deflation - Mises Institute |
| | Bank credit deflation, Salerno asserts, âhas a salutary effect on the economy and enhances the welfare of market participantsâ¦.Bank credit deflation is a benign and purgative market adjustment process.â Obviously, you cannot have a bank credit deflation without first having bank credit inflation. | | | Deflation is popularly defined as a general fall in prices; it is the opposite of what most people generally think of as inflation. | | | Despite the beneficial effect of bank runs and credit deflation in helping to check credit inflation, it is hard to imagine any widespread bank failures given the hyper-interventionist government we live with today and the ease with which money can be created. |
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http://www.mises.org/fullstory.asp?control=1040
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| | Inflation Is No Longer a Problem In the Uk Deflation Is? Discuss |
| | Deflation is a generalized and persistent decline in most, if not all, prices for goods and services. | | | From deflation to structural reforms, none of them will be easy to implement, but bold measures are needed to return the economy to strong, sustained growth. | | | More likely than not this, if it occurred, would be accompanied by declines in prices for many real assets and pressure for, even if not the actuality of declines in wage and salary incomes. |
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http://www.coursework.info/i/26056.html
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| | Tufte's Economics Classes Blog: Deflation |
| | Deflation is an issue concerning supply and demand. | | | Farmers and compnaies, more than likely, will default on loans which are fixed while the prices they receive fall. | | | This article found at www.washingtonpost.com concludes that deflation may require bigger deficits and lower interest rates. |
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http://econtufte.blogspot.com/2005/01/deflation.html
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| | Mises Economics Blog: Does deflation have a life of its own? |
| | According to Reisman deflation is not a fall in prices but rather a decline in money supply. | | | Consequently, it is not possible to reach any meaningful conclusion regarding deflation without addressing the issue of monetary inflation. | | | Furthermore, argues professor Reisman, if the money stock shrinks then regardless of what is happening to the production of goods and regardless of whether prices are falling or rising companies will continue to experience difficulty in making profits, while the debt burden of borrowers will intensify. |
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http://blog.mises.org/blog/archives/000791.asp
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| | Mises Economics Blog: Letter on Deflation |
| | "The deflation we face will be unprecedented in two ways: 1) cash, paradoxically, will not be 'king,' since the world's currency system for the first time has been hollowed to the core; and 2) asset liquidations will be commensurate in scale with the world's largest black hole of debt, the $100Tr market for financial derivatives. | | | But you side- stepped the issue with this clumsy non sequitur: 'What deflation does is provide a disincentive to borrow and an incentive to use current savings for purposes of investment.' Isn't it a little late for this morsel of plain-sense wisdom? | | | The late C.V. Myers explained succinctly why: Ultimately, every penny of every debt must be paid -- if not by the borrower, then by the lender. |
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http://blog.mises.org/blog/archives/000215.asp
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| | Deflation and Retail - US News Classroom |
| | What are the negative effects of deflation?” (Students may answer that if businesses don’t make a profit or as much profit, they may lay off workers or hire fewer workers. | | | Also, unexpected deflation can hurt debtors by increasing the real value of debt. | | | Ask students to interview employees at local retailers to ask them how their business strategies change during a period of deflation. |
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http://www.usnewsclassroom.com/resources/activities/act011224.html
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| | Fool.com: Deflation Q&A [Motley Fool Take] May 22, 2003 |
| | It is another thing for them to have to cut prices because there is too much product produced by all their competitors yet they have not figured out how to deliver that product (or service) with lower costs. | | | Recoveries from recessions are usually led by increased business investments, growing consumer spending and a boom in housing. | | | It is one thing for a business to cut prices because they have figured out a way to lower costs. |
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http://www.fool.com/News/mft/2003/mft03052206.htm
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| | Fedwatching: Archive Entry From Brad DeLong's Webjournal |
| | If anything, the breadth and pace of these declines towards deflation are increasing over the past few months, despite steady and high energy costs, while the hours worked and employment components of third quarter GDP make it clear that even as production increases, corporations are steadily focused on shedding costs to restore profits. | | | When deflation sets in the only way for firms to lower labor costs is to lay off workers. | | | Some 60-75 percent of the CPI is now in deflation, with education, housing and medical care the only components showing serious and sustained price rises and the non-financial corporate GDP deflator is already negative (the aggregate GDP deflator is barely above 1% even with these strong components added back in). |
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http://www.j-bradford-delong.net/movable_type/archives/000869.html
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| | Say's Law and Supply Side Economics |
| | Although cutting tax rates produced the "seven fat years" from 1982-89, and tax receipts actually did increase, this advice is now commonly disparaged as "tax cuts for the rich" and falsely blamed for growing federal budget deficits in the '80's [6]. | | | "Supply side" economics is now associated with Arthur Laffer and his advice in the late 70's that the highest tax rates should be cut, which would free up private capital and produce economic growth, which then would result in higher tax revenues. | | | If the economy had really been in trouble, some might have thought that welcome, but the economy was already recovering from the recession of 1949, nothing of the sort explains the prosperity of 1946-1949, and military spending, of course, does not produce the consumer goods characteristic of the economy of the 1950's. |
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http://www.friesian.com/sayslaw.htm
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| | Amazon.ca: Deflation: What Happens When Prices Fall: Books |
| | For example, we saw this in the housing market in the United Kingdom in the nineties when the collapse of the currency left people having mortgages on their houses that were higher than the market value of their homes. | | | The exact figures are that from 1960 to 1997 it cost approximately $13,000 in medical spending and pharmaceutical research to gain one year of additional life and that the economic return on this additional year of life was $150,000. | | | In a general contraction and (real) deflation, everyone suffers because borrowers must repay debts with what amounts to devalued currency. |
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http://www.amazon.ca/exec/obidos/ASIN/0060576464
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| | EconPapers: "Understanding Deflation: Treating the Disease, Not the Symptoms" |
| | Abstract: Deflation can be defined as a falling general price level utilizing one of the common price indices.the consumer price index; the GDP deflator or other, narrower indices as the wholesale price index; or an index of manufactured goods prices. | | | Falling indices of output prices can be the result of several mechanisms: productivity increases, quality increases and hedonic imputations of prices, competition from low-cost producers, government policy influences, or depressed aggregate demand. | | | Falling output prices, in turn, can have strong effects, especially on the ability to service debts fixed in nominal terms; depending on the level of indebtedness of households and firms, they can set off a classic Minsky-Fisher debt deflation spiral. |
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http://econpapers.repec.org/paper/levwrkpap/392.htm
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| | Deflation - Wikipedia, the free encyclopedia |
| | Deflation (economics), a decrease in the general price level (opposite of inflation) | | | Tax-deductibility of donations - Current budget - Daily report | | | The removal of loose soil by eolian (wind) processes |
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http://en.wikipedia.org/wiki/Deflation
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| | Asset and Debt Deflation in the United States How Far Can Equity Prices Fall? |
| | In an asset and debt deflation, the process of reducing debt by saving and curtailing spending takes a long time, say the authors. | | | Current imbalances and poor prospects for spending in the private sector affect the balance sheets of the commercial banks. | | | "How Far Can U.S. Equity Prices Fall Under Asset and Debt Deflation," Economics Working Paper Archive 368, Levy Economics Institute, The. |
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http://ideas.repec.org/p/lev/levppb/73.html
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| | Morgan Stanley |
| | The past week marked a quiet end to 2005, with little on the economic calendar, large numbers of market participants on vacation, and very light trading through the week. | | | These former planned economies had to accumulate capital quickly to join the global economy, as their assets from the planning era could not add much value. | | | The Anglo-Saxon economies went through structural reforms simultaneously in the early 1980s, decreasing the role of government, deregulating to increase economic flexibility, and opening up to global competition. |
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http://www.morganstanley.com/GEFdata/digests/latest-digest.html#anchor2
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| | Research - Economy - Economics - Inflation - Deflation - Currency - Consumer - Deloitte Touche Tohmatsu |
| | He is an expert on global economic issues as well as the effects of economic, demographic and social trends on the global retailing and consumer products industries. | | | He is recognized in the U.S. as an expert on economic forecasting of retail sales activity, consumer trends, technology and general economic trends. | | | Carl Steidtmann, based in New York, is Deloitte Research's chief economist and also director of consumer business research. |
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http://www.deloitte.com/dtt/article/0,2297,sid=40742&cid=41537,00.html
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| | EconLog, China, India and Deflation, Arnold Kling: Library of Economics and Liberty |
| | Deflation means that first world investors will be forced to invest in the third world if they want to see real returns on their capital, especially equity. | | | Of course, the flip side is that the business sector is brutally competitive, but that is the environment that produces world class companies. | | | I think global deflation is [in] the cards as long as we have free trade in goods and services. |
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http://econlog.econlib.org/archives/2003/05/china_india_and.html
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| | NEP-MAC-2003-04-27 |
| | "Threshold Effects in the U.S. Budget Deficit," Economics Working Paper Archive 358, Levy Economics Institute, The. | | | "Central bank Instruments, Fiscal Policy Regimes, and the Requirements for Equilibrium Determinacy," Working Papers 2003_5, Department of Economics, University of Glasgow. | | | "How Far Can U.S. Equity Prices Fall Under Asset and Debt Deflation," Economics Working Paper Archive 368, Levy Economics Institute, The. |
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http://ideas.repec.org/n/nep-mac/2003-04-27.html
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| | Business Cycles and Deflation |
| | "Monetary Policy in a Low Inflation Environment: Avoiding Deflation." Remarks from a Financial Roundtable Teleconference. | | | ” This article originally appears in Business Economics® October 1998 © 1998, the National Association for Business Economics. | | | Deflation is a topic appearing with more frequency in the business press. |
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http://www.nabe.com/publib/deflation.html
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| | Shunto - TheBestLinks.com - Japan, Recession, Deflation (economics), Karoshi, ... |
| | Since Japan has been in recession and deflation, with union membership falling, the value of the shunto and the automatic wage increases associated with it have come under threat. | | | Shunto, Japan, Recession, Deflation (economics), Karoshi, Enterprise union... | | | Shunto - TheBestLinks.com - Japan, Recession, Deflation (economics), Karoshi,... |
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http://www.thebestlinks.com/Shunto.html
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| | deflation - Wiktionary |
| | In economics refers to a decrease in the general price level, i.e. | | | Please help translate this message for your local site. |
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http://en.wiktionary.org/wiki/Deflation
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