Inflation or Deflation – which should we fear the most?

Published by Marcus Whitehead on

Ever since ‘Western’ central banks launched Quantitative Easing (QE) programmes in 2008 many commentators have feared the natural endgame is a period of high inflation, if not outright hyperinflation.

The last couple of years have seen the reverse with inflation falling and parts of Europe falling into deflation.

As we will come on to show you, the question of whether inflation or deflation should be feared the most is the wrong question to ask.  Inflation is an output from the economic environment.

A better question to consider is: what are the inputs and conditions that have led to the economic outputs, and why?

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