Is the US in danger of Japanese-style deflation – and what does this mean for investors?

//Is the US in danger of Japanese-style deflation – and what does this mean for investors?

Is the US in danger of Japanese-style deflation – and what does this mean for investors?

In 2000, I sat in a bland grey Prague conference room opposite officials from Japan’s Ministry of Finance. We were attending a G7/International Monetary Fund meeting. I asked if they thought the US and Europe could avoid Japan’s protracted deflation. None of them could suppress a smile. “Unlikely,” said one. So far, these officials have been wrong, but just barely. European inflation is around zero, and US inflation is a bit above 1 per cent. Could Japanese-style deflation hit the United…

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By | 2020-10-28T19:30:06+00:00 October 28th, 2020|Business|Comments Off on Is the US in danger of Japanese-style deflation – and what does this mean for investors?