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27.11.25 - 00:27
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Why This Fear Of Deflation? (ZeroHedge)
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Why This Fear Of Deflation?
Authored by Jeffrey Tucker via The Epoch Times,
Certain myths survive from a period of trauma. They can be wholly incorrect and yet widely believed by nearly all living experts. The myth keeps moving from generation to generation and becomes doctrine, one which we dare not question for fear of contradicting the settled consensus. It so happens that “everyone knows” something that is entirely incorrect.
The myth in this case is that deflation, in the form of falling prices, is always to be avoided at all costs. This myth is global.
The other day, Bloomberg and Economic Times whipped up a frenzy with an article called “What India can do about its low inflation problem.”
“India's economy, so often touted for potential to supplant China as a global engine, is having a hard time getting its arms around inflation. Not that it's too high, but because the pace of price increases is worryingly low.”
The prescription is always the same: loosen the money and pump...
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