Wednesday, October 08, 2008

We've Become Japan

With interest rates today cut to 1.5 percent, i.e., given inflation, nominally negative, we're in for substantial deflation.

3 comments:

Anonymous said...

> With interest rates today cut to 1.5 percent, i.e., given inflation, nominally negative, we're in for substantial deflation

Well, the economy shrinking, that may not be a bad thing

And I suspect that the usual "equation" for that includes other relevant variables, like the overall state of the economy, which probably balances out.

Anonymous said...

It seems as though greedy, dishonest capitalists are destroying capitalism.

@nooil4pacifists said...

Anony:

This isn't about fraud--which, in some ways, makes it more troubling.