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Deflationary in sentence

255 examples of Deflationary in a sentence

John Maynard Keynes pointed out the deflationary consequence of this attitude in 1941.
In a zero-interest-rate world, a strong dollar plays the same deflationary role in global markets as the gold standard did during the 1930s.
When deflationary expectations are entrenched, as they are in Europe today, consumers and investors delay spending on the ground that prices and costs will be lower tomorrow.
Deflationary expectations can be transformed into inflationary expectations – thereby encouraging more spending – only by policies that induce shock and awe.
The central bank needs to convince them that it will do “whatever it takes,” as Draghi put it in July 2012, to jolt the economy out of its deflationary lethargy.
And structural reform and fiscal consolidation are both deflationary in the short run.
And less spending means less upward pressure on prices – which is the last thing Europe needs in a deflationary environment.
Structural reform that increases the flexibility of labor and product markets is deflationary as well.
Economic expansion was interrupted in the 1970’s and 1980’s, but the cause was the macroeconomic crises triggered by the success of the OPEC cartel and the ensuing deflationary policies pursued by then-Federal Reserve Chairman Paul Volcker.
Moreover, like Germany, London maintains a huge current-account surplus (8% of GDP) – a potentially serious problem, given the deflationary effect that Germany’s surplus has had on the rest of the eurozone.
But bankers and businesses, viewing these measures as desperate responses to self-fulfilling deflationary expectations, went on an investment strike, while using the central-bank money to inflate the prices of their own assets (stocks, art, real estate, and so forth).
The expansion of the ECB’s balance sheet and the targeted depreciation of the euro should help to bring the eurozone’s short-term inflation rate close to 2% and thus reduce deflationary risks.
First, there was no automatic deflationary pressure following from some alleged peculiarity of the adjustment mechanism.
The question of overall deflationary – or inflationary – impact depended (and still depends) on the total quantity of money.
All three “arrows” of the strategy were to be aimed at freeing the economy from a 15-year deflationary quagmire.
Abe has flinched because the economy remains weak, posing renewed risks of a deflationary relapse.
Contrary to the current discourse, the long-term solution must provide a stimulus to get Europe out of a deflationary vicious circle – structural reform alone will not do it.
Facing the Deflationary ThreatMany central bankers are like the proverbial general who plans to fight the last war.
In a deflationary environment, this means that real interest rates - that are all that matter for economic stimulus - can not be pushed as low as might be necessary to boost demand and stem downward pressure on prices.
With clear and predictable communication of this sort, the risk that the Fed would be unable to free the US economy from a deflationary slump is much lower - and so is the risk that it would ever have to fight that battle.
This reinforces deflationary expectations, which, when dismissals become easier, imply a rapid reduction of permanent, full-time positions.
Faced with depressed private investment and consumption, rising fiscal deficits can play a useful role, offsetting the deflationary effects.
Indeed, global deflationary pressure would have emerged much sooner had China not launched its two-year stimulus plan in 2008, which boosted investment demand and thus delayed the fall in world commodity prices.
The entire world is in the grip of deflationary forces.
While this approach has succeeded in boosting financial markets, it has failed to cure bruised and battered developed economies, which remain mired in subpar recoveries and plagued with deflationary risks.
Interest RatesThe way out of a deflationary trap is to first induce inflation and then to reduce it.
Instead, China should use direct fiscal stimulus to offset the deflationary effect of declining credit growth and deleveraging.
But neither negative interest rates nor further expansion of the BOJ’s already huge program of quantitative easing (QE) will be sufficient to offset the strong deflationary forces that Japan now faces.
But a lower yen would help Japanese exporters only if China, the eurozone, and South Korea – all themselves struggling with deflationary pressures – do not match Japan’s rate cuts.
If all countries except the US devalue, the US economy will face the deflationary impact of their attempted deleveraging.
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