A fine line between deflation and inflation

This article says that if the Federal Reserve continues with its current policies, inflation could become a threat, but a change could see further contraction it contends. On asset price bubbles the author says the world economy could be threatened with both deflation and inflation.

First published by the Financial Times on 27 May.

Macroeconomists are argumentative. They are never more so than at cyclical turning-points. So today some see deflation on the horizon and others warn of a return of

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