Note: This article was authored in September 2015, but we never got around to posting – we figured it would be timely in light of the highly anticipated news from Fed Chair Janet Yellen today. Presented without any modifications…. Export and import prices came in today. On the export side, month-over-month prices came in at -1.3%. On the import side, month-over-month prices came in at -0.4%. The negative growth figures represent deflation. Deflation means prices are falling. How Do You Think Central Bankers Respond to Deflation? Now, when prices are falling, what would think central bankers would do to address…
Does Anyone Think It's Funny that the Fed Chooses to Raise Rates with Deflation?
Harrison Roger
Roger is an economic adviser and active angel investor. He owns various economics firms. His work allows him a diverse group of clients across the globe, including the United States, Europe, and Asia. He holds a Ph.D. in business economics.