Fears of a prolonged period of falling prices in advanced economies have eased over the past few months as both inflation and inflation expectations have rebounded. Nevertheless, the conditions under which deflation can become entrenched, in particular weak growth and a large degree of spare capacity, persist in Japan and much of the euro-zone.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services