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

Mihir S Sharma

Mihir S Sharma: Why Congress must sack Rahul Gandhi
Mihir S Sharma

Government's reforms are too half-hearted - but Rahul Gandhi's Congress is too amateurish and inept to hold it to account

Ajit Balakrishnan

Ajit Balakrishnan: The right to be forgotten
Ajit Balakrishnan

On the new dimensions in the battle for online privacy

Shreekant Sambrani

Shreekant Sambrani: The Narendra Modi sweepstakes
Shreekant Sambrani

With the fresh mandates, Mr Modi would be expected to deliver miracles. But that is for another day. For the moment, it would be cussedly churlish to deny him and his party their richly earned right to gloat

Advertisement

Columnists

Claude Smadja

Claude Smadja: The great oil price game
Claude Smadja

Will oil prices continue to decrease, and will Saudi Arabia then step in to arrest their decline?

Kanika Datta

Kanika Datta: Cranking it up
Kanika Datta

Few denizens of Gurgaon will view the departure of Bhupinder Singh Hooda of the Congress with regret. It is worth wondering, however, whether ...

Praveen Chakravarty

Praveen Chakravarty: The mathematics of Maharashtra
Praveen Chakravarty

A summary of Amit Shah's master strategy that helped the BJP emerge victorious in the recent Assembly elections

Back to Top