Friday, May 16, 2014

Roubini : I'm in favor of Low Inflation

Roubini to Peter Schiff  :  "I'm in favor of low inflation, a target of 2 percent. You were arguing that deflation was good. I was pointing out that in the period of time that we had deflation, the Great Depression, or the stagnation of Japan, in the last 20 years, or what's happening right now in the euro zone where you have deflation and recession, deflation is associated with lack of aggregate demand that implies an economy is in depression," he said. "And therefore, deflation is a symptom of lack of growth and aggregate demand. Why do you think deflation is good? That's nonsense."- in CNBC

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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