Understanding Deflation

A chart comparing interest rates and inflation in the US and Japan.

Are we sliding towards our own "lost decade"? James Bullard/St. Louis Fed hide caption

itoggle caption James Bullard/St. Louis Fed

In a paper released late last week, St. Louis Fed chief James Bullard warned that the US may be headed for "a Japanese-style, deflationary outcome within the next several years."

Today on All Things Considered, Michelle Norris asks Bullard what specifically has him so worried. And in case you're confused about what could be so bad about falling prices, our own Adam Davidson breaks it down in a patented Planet Money explainer.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.