All posts are my personal opinion
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If deflation is so terrible, why are Spain, Greece growing?
Prices are starting to fall across the European continent. Mass unemployment, and a grinding recession are forcing companies with too much capacity to charge less for their products. Company profits will soon be collapsing, while government debt ratios threaten to spiral out of control. The threat of deflation is so worrying, the European Central Bank is expected to throw everything in its armory to prevent it, and to get prices rising again. It may even move towards full-blown quantitative easing as early as Thursday. But here’s a puzzle. The two countries with the worst deflation in Europe are Greece and Spain. ... (full story)
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