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Strategies & Market Trends : Asia Forum
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To: Worswick who wrote (4883)6/27/1998 4:12:00 PM
From: Zeev Hed  Read Replies (2) of 9980
 
Worswick, deflation is a result of declining aggregate demand. Once the demand side of the equation starts to rise, the decline in prices and possible slight reflation is possible. The task of Japan is to unlock the financial resources that lay dormant and throw some of these into their economy, that will get Japan out of its own tail spin, and serve as a locomotive to pull out the rest of Asia out of their depression. After some time of increased economic activity, a new balance will be established in the commodity sector as well.

Zeev
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