Click to enlarge.
Ever get the feeling that our monetary leaders are running a grand experiment and have no idea how it will all turn out? Yeah, me too.
Perhaps Switzerland knows.
August 14, 2014
Swiss Deflate the Deflation Theory
For more than four years, consumer prices in Switzerland have risen at an annual pace well below 1 percent. In 2012 and 2013, the country even experienced deflation. Yet its economy has grown at a steady pace, and is expected to expand by 2 percent this year. The unemployment rate is a low 3.2 percent.
We should be so lucky. Perhaps they should too. Over the long-term, their real GDP growth is slowing relentlessly (as is quite evident when using the log scale).
Wow! I managed to make it through this deflationary post without mentioning Japan. Well, almost.
Source Data:
EIA: Natural Gas Spot and Futures Prices (NYMEX)
I'd guess income distribution influences inflation
ReplyDeletebut our policies seem to be to limit distribution to
the very top.
Sporkfed
"Saving the banks one bubble at a time since 1913"
ReplyDeleteSporkfed,
ReplyDeleteIf we could entice the super rich to build even larger mansions for themselves then, maybe, just maybe, we could get the price of natural gas higher. I suspect that the mansions would need to be a lot larger though. Homeless people in cardboard boxes don't use any natural gas so therefore wouldn't be pulling their fair share. Sigh.
:(
Rob Dawg,
ReplyDeleteNice, lol. Sigh.
Speaking of Japan, here is a long, but very interesting video about the BoJ and the Japanese economy since WW2.
ReplyDeleteMr Slippery,
ReplyDeleteAlthough the first few minutes had a generally gloomy tone, can I assume that the rest of the video will lift my spirits? You know, from their already high optimistic levels?
In all seriousness, it's now on my list of videos to watch.
The gloomy tone stays mostly gloomy.
ReplyDeleteMr Slippery,
ReplyDeleteHave no fear. It's only a matter of time before the clown horn takes over again.
That always lifts my spirits! ;)