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To: Olog-hai

Could also indicate deflation:

Investopedia explains ‘Deflation’

Declining prices, if they persist, generally create a vicious spiral of negatives such as falling profits, closing factories, shrinking employment and incomes, and increasing defaults on loans by companies and individuals. To counter deflation, the Federal Reserve (the Fed) can use monetary policy to increase the money supply and deliberately induce rising prices, causing inflation. Rising prices provide an essential lubricant for any sustained recovery because businesses increase profits and take some of the depressive pressures off wages and debtors of every kind.

Deflationary periods can be both short or long, relatively speaking. Japan, for example, had a period of deflation lasting decades starting in the early 1990’s. The Japanese government lowered interest rates to try and stimulate inflation, to no avail. Zero interest rate policy was ended in July of 2006.


7 posted on 09/17/2014 12:24:04 PM PDT by Raycpa
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To: Raycpa

Or an economy so socialized and taxed that no one wants to invest in the future. A world without births is a world without hope.


11 posted on 09/17/2014 2:59:27 PM PDT by 1010RD (First, Do No Harm)
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