After its banking crisis of 1987 1989, Japan experienced two decades of stagnation and deflation with skyrocketing government debt.

Japan s deflation and economic stagnation over the last two decades stemmed largely from a dysfunctional financial system and a lack of private demand.

Time is a luxury that Europe does not have. With every month that the economy loses productive capacity, the likelihood of stagnation and deflation rises.

Japan provides good lessons about where the true risks are, as it has been suffering from deflation or near deflation for 14 years. Since 1991, Japan has been mired in what Harvard economist Alvin Hansen, a contemporary of Keynes, once described as secular stagnation.

Deflation and Democracy

After its banking crisis of 1987 1989, Japan experienced two decades of stagnation and deflation with skyrocketing government debt. Preventing a repetition of this scenario is the main challenge for European policymakers in the coming years.

Japan, struggling against two decades of stagnation and deflation, had to resort to Abenomics to avoid a quintuple dip recession. In the United Kingdom, the debate since last summer has focused on the prospect of a triple dip recession.

Deflation Doldrums?

Putting Deflation First

The Deflation Bogeyman

Inflation or Deflation?

Bracing for Stagnation

Russia s New Stagnation

Can China Beat Deflation?

Can China Avoid Deflation?

Secular Stagnation for Free

All of this adds up to a recipe for continued slow growth, secular stagnation, disinflation, and even deflation. That is why, in the absence of appropriate fiscal policies to address insufficient aggregate demand, unconventional monetary policies will remain a central feature of the macroeconomic landscape.

Deflation in many advanced economies.

Has Global Stag Deflation Arrived?

The Problem With Secular Stagnation

Stagnation is the main threat.

Inflation and deflation of debts produce very different outcomes.

Deflation discourages optimism about the future.

The same stagnation applies to Russia.

Economic stagnation remains a serious concern.

Why Deflation is Good News for Europe

The experience of deflation is well entrenched.

There was no persistent tendency to deflation.

Economic stagnation has come to appear endless.

One is deflation that reduces prices and wages by 20 30 .

Japan provides good lessons about where the true risks are, as it has been suffering from deflation or near deflation for 14 years.

But that is logically flawed even with deflation, real purchasing power would fall, and the real value of debts would rise (debt deflation), as the real depreciation occurs.

Egypt s political stagnation has reduced its regional influence.

Cheap imports ameliorate the effects of wage stagnation.

Peace processes, he warned, could not afford stagnation.

But deflation is painful and cannot realistically be pursued for political reasons.

Abenomics goal is to escape two decades of deflation.

Deflation that emanates from the financial sector is lethal.

A painful decade of stagnation for America lies ahead.

This deflationary tendency will create serious economic problems, which do not necessarily result from deflation as such, but may stem from a natural resistance to deflation.

Employment growth continues to disappoint, and fears of deflation will not go away.

But the more immediate problem remains deflation, given high unemployment and excess capacity.

The embargo drove up prices and unleashed a period of inflation and stagnation worldwide.

Then, as now, fears about regional instability, economic stagnation, and social backwardness abounded.

Price deflation is far more likely in the near term.