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Non-Tech : Deflation

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To: jwk who wrote ()1/9/2000 5:01:00 PM
From: jwk  Read Replies (1) of 621
 
9/24/99 article looking at deflation in China:

ft.com

>>>...Since economic reforms began in 1979, the threat of prices rising out of control has been a perennial economic enemy number one. Inflation, in fact, was one of the principal causes of discontent that led to the Tiananmen Square protests in 1989.

But 23 consecutive months of declining prices have convinced some senior officials that deflation is an equally vexing problem.

"It might be more difficult to solve than inflation," said Xiang Huaicheng, the finance minister, in an interview. "I don't dare to be over optimistic on [our ability to combat] deflation," he added. ...>>>
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