A how-to guide for Japan to escape deflation

January 10, 2013

The nation’s new prime minister has promised to end falling prices. But raising the central bank’s inflation target may not suffice. Aiming for a sustained increase in the price level would be more credible. And a de facto currency peg may be better than more money-printing.

Interview questions for the new BOJ chief

February 12, 2013

The Bank of Japan’s next governor will help decide the fate of Shinzo Abe’s anti-deflation campaign. Guts, diplomatic savvy and belief in the prime minister’s campaign will matter more than technical expertise. The following questions should help Abe choose the right person.

Japanese workers need to go back to the 1980s

April 23, 2013

Whether the Bank of Japan’s money-printing succeeds in engineering 2 percent inflation depends on wages growing by about 5 percent a year. Although Japanese workers haven’t seen such largesse for two decades, a weak yen and a tightening labour market could do the trick.

Deflation flu could leave Asia feeling very sick

June 12, 2013

Producer prices in the region are sliding, and not just because commodities are getting cheaper. The main culprit is flagging consumption in the United States. If companies can’t compensate for lower prices by selling more, they may struggle to repay growing debt

For and against Ben Bernanke

January 26, 2010

LONDON/NEW YORK - It is easy to imagine a better candidate than Ben Bernanke to run the Federal Reserve. But actually finding one is another matter.

Deflation is still a danger

October 20, 2009

America's inflation hawks have been circling. With bumper economic growth in the third quarter now being taken for granted, calls for monetary tightening are getting louder.

Investors take note: low inflation isn’t deflation

February 27, 2014

The theory says that bonds benefit and stocks suffer during deflation. In the real world, disinflation has yet to turn into persistent price declines. Sluggish price rises are no bar to equities doing quite well, as long as there is GDP growth. It’s too early to write off stocks.