Visual Inflation/Deflation For Dummies

[ocrenter]

very good, please link up again when the deflation chart is available.

[UCGal]

[quote=ocrenter]very good, please link up again when the deflation chart is available.[/quote]
The bottom of the chart addresses deflation.

[UCGal]

[quote=ocrenter]very good, please link up again when the deflation chart is available.[/quote]
The bottom of the chart addresses deflation.

[UCGal]

[quote=ocrenter]very good, please link up again when the deflation chart is available.[/quote]
The bottom of the chart addresses deflation.

[UCGal]

[quote=ocrenter]very good, please link up again when the deflation chart is available.[/quote]
The bottom of the chart addresses deflation.

[UCGal]

[quote=ocrenter]very good, please link up again when the deflation chart is available.[/quote]
The bottom of the chart addresses deflation.

[citydweller]

So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?

[citydweller]

So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?

[citydweller]

So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?

[citydweller]

So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?

[citydweller]

So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?

[Rich Toscano]

[quote=citydweller]So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?[/quote]

“A” stimulus, maybe, but “The” stimulus? (The one that mostly bailed out financial companies?) No… good writeup here:

http://www.ritholtz.com/blog/2010/08/bailout-counter-factual/

Also: I believe that the whole “consumers will put off purchases if prices are dropping” thing is way overblown, in this tutorial and elsewhere. People might put something off for a little while, but that would only last for so long because A) life goes on and B) people would eventually want to capitalize on the good deals. Look at the computer industry as evidence, prices are constantly dropping there and yet people somehow buy computers.

The more harmful aspect of deflation, in our society, is that if the society is highly indebted then deflation causes the real burden of the debt to rise.

[Rich Toscano]

[quote=citydweller]So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?[/quote]

“A” stimulus, maybe, but “The” stimulus? (The one that mostly bailed out financial companies?) No… good writeup here:

http://www.ritholtz.com/blog/2010/08/bailout-counter-factual/

Also: I believe that the whole “consumers will put off purchases if prices are dropping” thing is way overblown, in this tutorial and elsewhere. People might put something off for a little while, but that would only last for so long because A) life goes on and B) people would eventually want to capitalize on the good deals. Look at the computer industry as evidence, prices are constantly dropping there and yet people somehow buy computers.

The more harmful aspect of deflation, in our society, is that if the society is highly indebted then deflation causes the real burden of the debt to rise.

[Rich Toscano]

[quote=citydweller]So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?[/quote]

“A” stimulus, maybe, but “The” stimulus? (The one that mostly bailed out financial companies?) No… good writeup here:

http://www.ritholtz.com/blog/2010/08/bailout-counter-factual/

Also: I believe that the whole “consumers will put off purchases if prices are dropping” thing is way overblown, in this tutorial and elsewhere. People might put something off for a little while, but that would only last for so long because A) life goes on and B) people would eventually want to capitalize on the good deals. Look at the computer industry as evidence, prices are constantly dropping there and yet people somehow buy computers.

The more harmful aspect of deflation, in our society, is that if the society is highly indebted then deflation causes the real burden of the debt to rise.

[Rich Toscano]

[quote=citydweller]So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?[/quote]

“A” stimulus, maybe, but “The” stimulus? (The one that mostly bailed out financial companies?) No… good writeup here:

http://www.ritholtz.com/blog/2010/08/bailout-counter-factual/

Also: I believe that the whole “consumers will put off purchases if prices are dropping” thing is way overblown, in this tutorial and elsewhere. People might put something off for a little while, but that would only last for so long because A) life goes on and B) people would eventually want to capitalize on the good deals. Look at the computer industry as evidence, prices are constantly dropping there and yet people somehow buy computers.

The more harmful aspect of deflation, in our society, is that if the society is highly indebted then deflation causes the real burden of the debt to rise.

[Author]

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