Archive for August 18th, 2010

Deflation Fears

Posted in Economy on August 18th, 2010 by Paul Deng – Be the first to comment

How real is deflation threat?  Why do economists worry more about deflation than inflation?  Where should investors put their money during deflationary environment.  On Point, my favorite program of WBUR, discusses these questions (source: NPR).

I also include a background chart:

InflationJuly2010 300x196 Deflation Fears

(click to enlarge; source: CalculatedRisk)

Inflation (core CPI) in historical perspective:

core cpi history 300x180 Deflation Fears

(click to enlarge;  source: St. Louis Fed)