Published at 02:47 (GMT) 05 Dec Telegraph piece by AEP: Europe is one shock away from a deflation trap. A surprise anywhere in the world is all that it needs: an upset in China as the credit bubble pops, or a global bond shock as Fede winds down monetary stimulus. Eurozone PPI fell to -1.4% in October. This is how deflation becomes lodged in the price chain. Europe's slide towards deflation is replicating what happened in Japan in the 1990s at the onset of its lost decade, when
Reported by FXstreet.com 1 day ago.
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