Months of uncertainty on the deflation question
Article Abstract:
The disappearance of inflation would mean lower interest rates, rising bonds, and increased interest in growth stocks, while cyclical stocks would become less popular. Deflation has not been dominant since the 1930s, and the service sector has grown since then. A large service sector does not prevent deflation, as has been shown in Japan. Deflation could result from slower growth in US economic activity, which would tend to push down prices elsewhere. United Kingdom unemployment could rise as a result of deflation, or of interest rate rises if inflation rises. Only a path between deflation and inflation will help UK public finances.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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The looming spectre of a US recession
Article Abstract:
There is concern that the US economy could be entering a recession following a drop in employment in Jan 1996. Retail sales and industrial production have also been stagnant from Aug 1995. The government shutdown has affected gross domestic product, and an inventory correction is also linked to the slowdown, while high debt levels may hamper consumer spending. The dollar would drop in value, and this could affect European companies in countries linked to the German mark.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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