A year ago I said Japan gets deflation (already a fact), and US efforts to avoid deflation would result in stagflation.
Here are my current bets: Deflation for Japan and Germany (saddled with a high currency and an inability to cut interest rates, since Japan is at 0 and Germany is locked into a pact with inflationary, cheap currency countries). Stagflation for Australia and Canada because they long ago got used to a cheap cheap currency and must now steer their cheap dollars higher just to avoid inflation, even as the world looks very flat. The US is the puzzle. Is it deflation or stagflation. Given what I intuitively feel about the US economy's critical mass of true unproductivity, I'm betting stagflation. C. Jannuzi __________________________________________________ Do you Yahoo!? Yahoo! Web Hosting - Let the expert host your site http://webhosting.yahoo.com
