AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Byline: Parista Yuthamanop
Nov. 4--About the `D' words ...
Policymakers last week were locked in a tussle over concerns about whether the Thai economy was heading into a deflationary state.
At last week's cabinet meeting, Prime Minister Thaksin Shinawatra told state agencies to investigate what measures could be taken to jump start the economy if the global environment continues to deteriorate.
Deflation, as opposed to inflation, refers to a steady decline in prices. Deflation can play havoc with an economy, as the price of servicing debt increases -- witness the decade-long recession in Japan.
Falling prices can, of course, reflect improved productivity and competition. However, it is more worrisome when prices fall due to declining demand and excess capacity, which can touch off a downward spiral ...
Source: HighBeam Research, Thai Policy Makers Discuss Deflation, Disinflation.