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Practice 6  If there's a threat of dangerous deflation—a general fall in prices—the causes lie as much in Europe and Japan as in the United States. The inevitable collapse of America's speculative boom need not have been especially damaging if the world's other advanced economies were healthy. Their expanding appetite for imports would have bolstered the United States and so-called emerging market countries, from Brazil to South Korea. The trouble is that other advanced economies aren't healthy.  Deflation could emerge from simultaneous slumps in the world's three major economies. Prices drop because there's too little global demand chasing too much global supply—everything from steel to shoes. Japan's ills are well known. Its banks are awash in bad loans. Less understood (at least in the United States) is the fact that Europe's troubles stem significantly from Germany. Germany is Europe's “sick man”, just as Japan is Asia's. Only 15 years ago, these countries seemed poised to assume leadership of the world economy. Now they are dragging it down.

发布日期:2022-07-19

Practice 6  If there's a threat of dangerous defla...

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