Business Standard

Savers and spenders

Related News

 As the financial media continue to speculate about the possibility of deflation in the OECD countries, one interesting feature is emerging.

 The country already in the throes of deflation is of course Japan, where consumer prices have dropped 7 per cent since 1995, or roughly 1 per cent per annum.

 The next candidate for a general price fall seems to be Germany where inflation is at 0.7 per cent and is likely to fall further. The economy least likely among the big three to experience deflation, by common consent, seems to be the United States.

 It is interesting that Japan and Germany, in that order, are famously frugal and their savings get reflected in their traditional surpluses on the current account; in contrast, the US is notoriously spendthrift with a deficit on current account fairly close to 5 per cent of GDP in the current year.

 Clearly, spenders have an edge over savers in avoiding deflation! In a way, deflation is

Read more on:   
|
|
|
|
|
|
|
|

Read More

Shyam Ponappa: The SC and spectrum

Only the Supreme Court can rectify spectrum management in line with other resources, but all stakeholders can contribute

Most Popular Columns

Ajai Shukla

Ajai Shukla: Mr Jaitley's best decision
Ajai Shukla

The defence minister gives us hope that he might be more energetic than his predecessor in filling a yawning gap in our maritime power

Rahul Jacob

Rahul Jacob: How Mr Modi has outplayed the media
Rahul Jacob

From a ruling party's perspective, the BJP is in a sweet spot; editorial independence and analytical coverage of governance is rapidly declining

T N Ninan

T N Ninan: 1974 - The invisible turning point
T N Ninan

India's economic policy had begun to swing towards the radical changes of 1991 just before Business Standard was born but few will remember that

Advertisement

Columnists

Abheek Barua

Abheek Barua: The right questions
Abheek Barua

A response to the 28 economists defending the employment guarantee scheme

Barun Roy

Barun Roy: Surprise on the steppes
Barun Roy

Building a new capital city from scratch isn't easy. Myanmar, South Korea and Malaysia have all tried, but the only virgin city that has taken ...

William Pesek

William Pesek: Learning to love China's new superbank
William Pesek

The US shouldn't just support China's $50-billion Asian Infrastructure Investment Bank, but seek to join it. The best way to influence the ...

Back to Top