dinsdag 6 oktober 2009

What if everything gets too cheap?

After a period of non stop price increases, it seems that the era of deflation has arisen. Finally, those prices go down!
This situation is perhaps not that rosy. Because of persistent deflation people postpone their purchases, which ultimately results in a slowing economy. Moreover, our own possessions also continue to slide. Currently, this fear of deflation only takes place in the stock market. However, everyone knows the stock exchange is extremely sensitive to anxiety. If this fright becomes reality, the banks will be overwhelmed with billions of losses, and the world economy will be in a deflationary spiral.

Nathalie Mortier.

Source: click here.

2 opmerkingen:

EcoEnglish zei

arisen --> come
Interesting topic, no real mistakes.
OK!

EcoEnglish zei

After a period of non stop price increases, it seems that the era of deflation has come. Finally, those prices go down!
This situation is perhaps not that rosy. Because of persistent deflation people postpone their purchases, which ultimately results in a slowing economy. Moreover, our own possessions also continue to slide. Currently, this fear of deflation only takes place in the stock market. However, everyone knows the stock exchange is extremely sensitive to anxiety. If this fright becomes reality, the banks will be overwhelmed with billions of losses, and the world economy will be in a deflationary spiral.