PRICED OUT OF THE MARKET

摘要

Deflation is a dou ble curse for investors. When price inflation drops below zero, it doesn't just hurt equities by eroding profits; it can also make govern ment bonds less attractive by undermining a country's tax base, warns Keith Wade, chief economist and strategist at London-based asset manager Schroders. For some nations the risk of stubborn, Japanese-style deflation is real. Over the past decade average annual inflation was 2 percent for advanced economies and 6.5 percent for emerging markets, says John Lonski, chief capital markets economist at Moody's Analytics in New York. "