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Inflation + Deflation = Japan?

16 August 2010 210 views 5 Comments

I try to explain sometimes how we can have both inflation and deflation… here’s a great comment from a ZH article that explains it well:  “Japan has been suffering from this phenomenon for over 20 years.  Tokyo and Osaka are the two most expensive cities in the world to live in, while their housing and stock prices have collapsed during that time.  We call it deflation, because its the only word we have for it.  But asset deflation coupled with a rising overall level of prices is not unheard of.”

5 Comments »

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