If you find yourself confused over the inflation and/or deflation issues our nation faces, I guarantee you, you are not alone. Indeed, when we watch the financial news stations, everyone has a different opinion of what’s going on, and what will happen in the future. And to top it all off they all disagree on how much each type of inflation, stagflation, disflation, disdeflation, deflation, and to what degree each will, or may occur? That’s enough to drive someone to drink.
So, let’s discuss some of these terms, not that you will understand it any better once I explain them to you, but it’s a fun exercise for all of the arm-chair economist out there who ponder our glocal economy.
- Disflation
- Deflation
- Disdeflation
- Inflation
- Stagflation
So, what is disdeflation? Well, it is defined as the slowing of deflation, or in other words the slowing of the increased momentum of deflationary trends. What, you ask? Exactly, and that is Exactakily the problem. So, as a slowing of a deflationary trend moves back on the speed scale towards zero, it is disdeflation, and as it crosses that zero line, it moves forward into a mild inflationary stance, which is where we really want to be.
Disflation is a pulling back from inflation, but has not yet reached deflation going backwards. Stagflation is what we had in the late 80s and early 90s, which no one cares to remember, it wasn’t all that fun. Most importantly you ought to know that dis-deflation is going to be talked about more and more as a positive sign, until we reach the ever dreaded inflation, at which time every economist and retiree starts freaking out.
So, I hope this article helps you understand all this, but if it didn’t – don’t worry, no one else gets it either, not even the economists who are leading our nation apparently. Please consider all this.
