THE INFLATIONARY AND DEFLATIONARY TRENDS IN THE GLOBAL ECONOMY, OR 'THE JAPANESE DISEASE' IS SPREADING

Leonid Grinin (1) , Andrey Korotayev (1)

1 RAS - Russian Academy of Sciences [Moscow]

The danger of deflation has been rather frequently mentioned recently among numerous concerns over the European and partly American economies. Analysts cite the Japanese economy which has been suffering from deflation for the last two decades despite the large investments in economy and the government's efforts to increase inflation. Similarly, notwithstanding many trillions of dollars, euro, pounds and yen that were invested in economies over the past few years, the inflation in the Western countries still remains low. On the whole, there are reasons to maintain that European countries suffer from ‘the Japanese disease’, and this disease can progress or even become chronic. The USA, although to a lesser extent, has the signs of the disease as well. As a result, the financial infusions can become permanent, as it happened in Japan. The present paper defines the reasons of the problem, explains the irregularity of the inflation-deflation processes in the world and also offers some forecasts.

Keywords: Economic laws; the Japanese Economy; Demand; Inflation; Deflation; Investments; Center

Domains: History, Philosophy and Sociology of Sciences; History; Philosophy

Leonid Grinin, Andrey Korotayev. THE INFLATIONARY AND DEFLATIONARY TRENDS IN THE GLOBAL ECONOMY, OR 'THE JAPANESE DISEASE' IS SPREADING . Journal of Globalization Studies, 2014, 5 (2), pp.152-173. ⟨hprints-01863076⟩