Inflation/Deflation DebateSubmitted by MississippiGRITS on Wed, 01/07/2009 - 12:53
There seems to be some differing opinions on whether we are going to experience inflation in the coming months or continued deflation. The following link has some great graphs and a makes great argument.
A debate is currently raging among economists about whether the US is about to plunge into a deflation like Japan in the 1990’s or go into an inflationary spiral.
There is enough evidence on either side to make a convincing case.
Some of the indicators in the table below have more importance and some have less importance in the discussion, (so you can’t score it equally!) But the one variable that trumps them all is named Bernanke. And that tips the scales towards inflation. Lots of it."