The dangers of holding debt during deflation

It is easier to build wealth in an inflationary economy than a deflationary one. So which economic condition are we in? According to Fredric Neumann economist with HSBC Global Research the United States and Japan face the highest risk of deflation but neither is there right now. Rather these economies along with many others in Asia are realizing a degree of disinflation - the result of lower energy food and key commodity prices. While many producers and consumers appreciate the relief of lower prices the real concern is that price declines matched with growing unemployment financial instability and business failures may . . .

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