Wednesday, March 13, 2013

Lars Syll — Sweden hit by deflation

Sweden is according to new statistics from the Statistics Sweden now in a state of deflation. The inflation rate was -0.2 percent in February, down from 0.0 percent in January. The inflation rate according to CPIF was 0.9 percent in February 2013, and HICP has increased by 0.5 percent since February of 2012.
So yours truly thought he should give the Swedish finance minister - Anders Borg – a suggestion for reading …

Zoltan Pozsnar and Paul McCulley have written an absolutely splendid essay on what a liquidity trap means and why mainstream neoclassical economics has nothing to offer in way of solving the problems that it brings along – and why it is so important to get hold of the insights that Fisher, Keynes, Minsky and Krugman have given us on debt-deflation processes and liquidity traps:
Lars P. Syll's Blog
Sweden hit by deflation
Lars P. Syll | Professor of Economics, Malmo University

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