analyst jim o'neill believes japan and china will be the only economies to be hit by deflation
Global deflation concerns are overplayed, analysts at Goldman Sachs have concluded. Despite signs of a decline in risk aversion and a more optimistic mood in financial markets, investors continue to worry about the spectre of global deflation as a key risk, said analyst Jim O'Neill. The Federal Reserve has focused squarely on this issue, he said. He added: 'Surprisingly, given our cautious views on the economic outlook, we think fears of deflation may be exaggerated. Although we expect disinflation to continue over the next 12 months or so, the risk of sustained negative price declines...
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