In the News
Balancing out Good and Bad Deflation
Penny Brooks
19th February 2015
Mark Carney says that a period of low inflation – even deflation – propelled by falling oil prices would be "unambiguously good" for the economy. How do we reconcile this with the textbook position that the economy needs a little bit of inflation, and that deflation is to be avoided? He has also said there were no signs yet of "bad" deflation – what is the difference between 'good' and 'bad' deflation? Can we assess whether it is true to say that deflation is always bad for the economy?
You might also like
Low or zero inflation is normal: competition keeps it that way
24th September 2014
Aggregate Demand and Aggregate Supply Lesson Resource
22nd January 2016
Relevance of Keynesian Economics
17th October 2014
The Cross Rail Project
22nd September 2014
Inflation, unemployment and the Misery Index
17th October 2013
60 Second Adventures in Economics - The Phillips Curve
20th September 2012
Aggregate Demand Glossary
5th May 2012