Loading ...Stocks Are Hurt by Latest Fear: Declining Prices
Posted on November 20th, 2008 in Implode-Explode Fed News
While most consumers might welcome the idea that things are getting cheaper, deflation is an economists’ nightmare. It was a hallmark of the Depression and Japan’s so-called lost decade in the 1990s. A big worry is that deflation would blunt the impact of interest rate cuts by the Federal Reserve, forcing policy makers to use other tools to try to revive the economy.
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