A falling dollar, steep yield curve, narrowing credit spreads and a rising stock market are all signs deflation is not a real problem in the US
Deflation is everywhere. References to it, that is. Yields on long-term Treasuries have collapsed, falling more than 50 basis points following the Federal Reserve's intimation on 6 May that inflation could be too low. Judging from the ensuing discussion, inflation and deflation are apparently hard to define and more difficult to understand. Chronically falling prices of technology equipment are not deflation. Ever-escalating tuition and medical care costs don't constitute inflation. Deflation (inflation) is a general fall (rise) in the price level associated with a fall (rise) in the s...
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