Sunday, April 26, 2009

Pick Your Poison: Inflation, Deflation, Stagflation



Analysts see possible scenarios for each of these to strike the U.S. economy. Stay alert and invest accordingly

By Lauren Young

Will the real 'flation please stand up?

Experts are arguing about where the U.S. economy is heading as the global financial system tries to right itself. Is it on the path to inflation, deflation, or, worse, stagflation? Rising unemployment and excess production capacity are making it hard for the U.S. economy to climb out of recession. And that, in turn, is putting a strain on pricing power and wage growth—raising fears of deflation, which develops when a broad decline in prices amid falling demand feeds further price-cutting.

in:
http://www.businessweek.com/magazine/content/09_18/b4129068653155.htm?chan=magazine+channel_personal+business&chan=investing_investing+index+page_top+stories