3. The fear of deflation December 17 release of consumer price data for November. Fastest rate of price decline in 61 years. Fed`s(Federal reserve Board) target shifted to preventing widespread deflation.
4. The negative impacts of deflation The dreaded “D” word. First falling prices – then cutting wages and axing jobs. Boosting the value of dollar – raises the cost of repaying debt.
5. Economist`s views of deflation fear Barry Boswell Josep Trevisani Still even optimistic economy watchers prepare for defense – identifing the sectors which provide goods and services consumers and businesses can`t do without.
