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The global economy is currently experiencing deflationary trends that could lead to a global depression, as shown by Japan's "lost decade" from 1990-2000 following the collapse of its asset bubble. Deflation depressed Japan's economic activity and low growth during this time. Central banks must implement policies to combat deflation based on lessons from Japan's experience and the 2008 global financial crisis, which demonstrated how deflation can seriously damage economies worldwide.
The global economy is currently experiencing deflationary trends that could lead to a global depression, as shown by Japan's "lost decade" from 1990-2000 following the collapse of its asset bubble. Deflation depressed Japan's economic activity and low growth during this time. Central banks must implement policies to combat deflation based on lessons from Japan's experience and the 2008 global financial crisis, which demonstrated how deflation can seriously damage economies worldwide.
The global economy is currently experiencing deflationary trends that could lead to a global depression, as shown by Japan's "lost decade" from 1990-2000 following the collapse of its asset bubble. Deflation depressed Japan's economic activity and low growth during this time. Central banks must implement policies to combat deflation based on lessons from Japan's experience and the 2008 global financial crisis, which demonstrated how deflation can seriously damage economies worldwide.
The global depression and deflation is currently underway!
The impact of the ongoing global deflationary trends on
economies can be gauged by what Japan had experienced during the period between 1990 2000, which is also known as Japan's lost decade. The collapse of the asset bubble in 1991 heralded a new period of low growth and depressed economic activity. The factors that played a part in Japan's lost decade include availability of credit, unsustainable level of speculation, and low rates of interest. The deflationary trend could turn out to be a big concern for policy makers and investors that may well lead to a global depression. The lingering memories of the 2008 financial crises that had literally rocked the world are still fresh in the minds of most people. That is why it's important for central banks to implement policies to fight the debilitating effects of deflation.
Guidelines Issued Under Section 36 (1) (A) of The Banking Regulation Act, 1949 - Implementation of The Provisions of Foreign Contribution (Regulation) Act, 2010