• Fri
  • Dec 26, 2014
  • Updated: 9:59pm

Deflation

Party like it's 2007 again? Don't hold your breath

Our bleak future

Five years after the global financial crash, it is perhaps not surprising that so many regional bosses (and economists, who should know better) are clawing for evidence that recovery is close at hand.

Wednesday, 26 March, 2014, 11:57pm

No cutting the slack

The Bank of Japan last month began its programme to flood the markets with US$1.4 trillion in cash to reflate a limp economy. Photo: Reuters

The Bank of Japan may end up pursuing its massive monetary easing for up to five years before achieving inflation levels conducive to unwinding its aggressive stimulus, a poll of central bank watchers suggests.

23 May 2013 - 4:27am

Japanese PM Shinzo Abe helps big firms but fails to tackle structural problems

Prime Minister Shinzo Abe has failed to deliver on his promises to restructure an economy used to years of deflation. Photo: Reuters

Abenomics, as the radical economic policies of Japan's Prime Minister Shinzo Abe have inevitably been dubbed, has delighted the country's big industrial and financial players.

8 May 2013 - 5:20am

Monetary easing the wrong cure for Japan's deflation

Bank of Japan's aggressive move will spur speculation and risk the yen's collapse. Photo: Reuters

The Bank of Japan shocked the market with its aggressive bond-buying programme aimed at achieving 2 per cent inflation in two years.

10 Apr 2013 - 3:20am 1 comment

Bank of Japan chief to do 'whatever it takes' to end deflation

Bank of Japan governor Haruhiko Kuroda (centre) speaks at the Diet's lower house financial committee last month. He is aiming for 2 per cent inflation by 2015. Photo: Reuters

Kuroda needs price rises in six to 12 months or the market may lose confidence in his ability to reach a 2 per cent inflation target by 2015, say Goldman Sachs and JP Morgan Chase. The bank was expected to boost monthly bond purchases by about 50 per cent to 5.2 trillion yen (HK$430 billion) at a two-day meeting yesterday.

4 Apr 2013 - 3:35am

Japan faces wage hurdle in bid to end deflation

A central bank survey found most people disliked price rises.

A decade and a half after Japan slumped into deflation, the central bank is set to signal its strongest effort yet to reverse the trend. The biggest challenge may be that the nation has come to rely on falling prices.

19 Jan 2013 - 5:12am

Are the days of rapid economic growth over?

US President Barack Obama is in negotiations with Republicans on a deal to avoid the fiscal cliff. Photo: MCT

The great bulk of the economic commentaries you read in the papers are focused on the short run - the effects of the "fiscal cliff" on US recovery, the stresses on the euro, Japan's latest attempt to break out of deflation. This focus is understandable, since one global depression can ruin your whole day. However, what do we know about the prospects for long-run prosperity?

30 Dec 2012 - 7:27am 1 comment

Japan output slumps 1.7pc to post-quake low

Weakness in exports is a major drag on Japan's economy.

Japan's industrial output tumbled more than forecast to the lowest level since the aftermath of the record 2011 earthquake, bolstering the case for Prime Minister Shinzo Abe to unleash large-scale stimulus.

29 Dec 2012 - 4:58am

Bank of Japan faces pressure to act to end deflation and spur growth

Governor Masaaki Shirakawa is due to step down soon, opening up a chance for someone who is more aggressive on easing. Photo: Bloomberg

The Bank of Japan faces increased pressure to step up easing in coming weeks as political leadership changes and pessimism among manufacturers intensify calls for more aggressive action to end deflation and revive growth.

5 Oct 2012 - 3:45am

Warning: quantitative easing could end up causing deflation

Warning: quantitative easing could end up causing deflation

On Monday Monitor looked at the argument that holds that the real purpose of the Federal Reserve's latest exercise in printing money is to pump some inflation into the US economy.

The idea is that rapidly rising prices would shrink debt levels relative to nominal output and encourage consumers to go out and spend before things get more expensive.

19 Sep 2012 - 3:07am 5 comments

If rising prices don't get us, then deflation is certain to

I'm not sure if there is a collective noun for a group of economists. Given the reputation of economics as the dismal science, perhaps it should be a lamentation of economists.

15 Aug 2012 - 11:23pm

Soaring grain prices stoke inflation fears

Just a few days ago, economists were fretting about signs of deflation in the Chinese economy, given falling prices for everything from clothing to telecommunications to food.

27 Jul 2012 - 12:00am

Dollar peg has its drawbacks, but we have no alternative

Former central banker sends shockwaves through city by calling into question link to US dollar ...

South China Morning Post, June 13

14 Jun 2012 - 12:00am

Talking points

Our editors will be looking ahead today to these developing stories ...

York Chow updates Legco on mainland mothers

12 Mar 2012 - 12:00am

Bears on rise in home market

Bulls are quitting the city's housing market as the betting from analysts swings towards the view that home prices have entered a falling cycle that will last for at least the next 12 months.

9 Nov 2011 - 12:00am

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