Sunday, January 5, 2014

Japanification would imply Stagnation and outright Deflation

 How realistic is a deflation scenario in the industrialized countries, the Japanification?

Nouriel Roubini : Japanification would imply stagnation and outright deflation. As long as growth remains below trend, inflation is going to be low, but I don’t see the risk of outright deflation with exception of some countries of the Euro periphery: As long as Germany is not willing to reflate, internal devaluation is forced upon the periphery. It would be better if Germany allowed inflation to go beyond 2%. - in

Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
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