Global Economy Stumped By Low-Price Problem

Source: WSJ

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  1. DeDude commented on Dec 16

    Yes they keep predicting inflation levels way above what reality deliver to them later. Could it be that their models are wrong? – – – NEVER!!! it is reality that is wrong!

  2. Theravadin commented on Dec 17

    I like it: the Hitch-hikers guide to the Galaxy theory of economics: “Economics is definitive. Reality is frequently inaccurate.” Likely to be the core theory behind the launch of a truly breath-taking new school of theoretical economics.

  3. Willy2 commented on Dec 17

    – And that low inflation is a “Moderate Wage increase” problem. Since say 1980 wages have gone up every year below inflation. And that undercuts demand resulting in “low inflation” to outright “deflation”.
    – Add to the mix that corporations still seek to increase productivity (= produce the same amount of goods with fewer workers) and it’s quite clear that inflation won’t pick up any time soon.

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