Central banks and governments in the West are trying to prevent deflation in the post-covid world. What if inflation and not deflation becomes the order of the day?
Central banks and governments in the West are trying to prevent deflation in the post-covid world. What if inflation and not deflation becomes the order of the day?
Stephen Roach, an economist at Yale University, thinks inflation is the way forward. Mint takes a look. Why is deflation bad for world economies? As people have lost jobs, incomes in general and salaries in particular have declined.
This has led to a lot of demand destruction. Hence, there is an expectation that deflation will set in as businesses cut prices of goods and services in the hope of getting people to