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Reuters Asks: Is the bigger threat inflation or deflation?

Friday, August 17, 2012 - 01:42

Aug. 17 - Despite the recent spike in corn and food prices, do deflationary forces still pose the bigger threat to the world economy?

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Disinflation is still the the big issue. For us on the global crisis. Boston is clearly still deflation if at all because simply -- -- gambling happening weather effects we had the drop all of this is obviously. Now costing concerns about who put inflation will want but I think we have very unlikely to see something similar that we had for example two years ago. Well I think K inflation remains arm on madame train and corporal Mike you're 2% that -- -- Vienna -- yeah in ninety days to ease you. Although some food prices will push by. We think that the combination all of global slack slowdown in Europe elsewhere. Sufficient to produce this inflation forces. It's -- sort of thing -- we don't need in the current environment you know -- -- the world is going into it pretty difficult phase and a rising commodity prices and food prices are probably. Something that we need the least. This especially Keaton Asia when the big boss of inflation errors made up more substantially by feed prices some things and make it knock on effect in -- You have these -- short term impact of the prices of food. Now of course in some countries that will create. Some policy response to -- may not be appropriate do with the you know interest rates for so lower. Or or a credit. And you really don't want to do that because you don't want to change the fundamental direction of policy by short term. Phenomenon. But rather to isolate and respond to that -- for short term phenomenon.

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Reuters Asks: Is the bigger threat inflation or deflation?

Friday, August 17, 2012 - 01:42