Deflation? Try A Tale Of Two Inflations Dian L. Chu Jun. 14, 2010, 8:13 AM The crisis in Europe is causing concerns about deflation in the U.S. and other developed economies after weeks of financial-market turmoil. The fears are most pronounced in Europe, where a combination of spending cuts and tax increases could weigh on economic growth and feed into deflation. Financial markets are reflecting a diverging expectation. Gold prices have been soaring—a potential indicator of inflation fears—while many other inflation indicators are going the other way. In the United States, the loose monetary policy has not resulted in any...