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deflationary spiral |
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I am very confident we do not have a deflationary spiral, but at the same time we do not have any very explicit, very good answer to stop deflation,'' he said. Yamaguchi added that the risk of Japan falling into a deflationary spiral is ''small,'' saying that prices are continuing to fall at the moment but the pace of decline is likely to moderate from the latter half of fiscal 2009. If the economy stuck at that rate, due to lack of investment by companies and growing consumer debt, the Treasury model suggests that Britain would enter a deflationary spiral by the middle of 2005. |
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