The economy: inflating in a negative fashion
by Simon Goodley from on (#6WW1)
This week's inflation data may see the rate dip below zero for the first time since 1960. But don't call it 'deflation'
What do economists do to their children's beachball after a vigorous afternoon session by the seaside? Do they deflate it? Don't be daft. They negatively inflate it.
You may not quite get the difference between the two, but don't worry. This week might provide you with the chance to enrol in one of those crash courses in the dismal sciences that we all adore, as there's a chance that when the latest inflation data is revealed we will discover that prices have been falling (at least according to the consumer price index measure).
Continue reading...