Reflation vs deflation

The US economy is in recession and although consumer confidence has improved slightly, unemployment still remains high and some analysts are concerned about inflation and deflation of the economy. Fred Alger, chairman and president of Fred Alger Management, says the US economy may not be as deep in recession as first predicted. However, the signals are mixed. Zero-interest financing has seen record car sales in October and early November in the US, states Alger. Existing home sales were up 5.5% in October compared to September 2001 and 2% above the number sold in October 2000. Alger ...