Fred S

Deflation Economics and the Dollar

I would differentiate dis-inflation, which China exported to the US and others, vs. deflation. While dis-inflation is tolerated and even fostered deflation will not be tolerated by the central banks. The fed and others will do whatever it can to re-inflate the world. Deflation is caused by lack of demand while dis-inflation is caused by over supply, or the supply of cheaper inputs as was the case with China and cheap labor.