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Created by : Vikas Kumar, Sr. Associate,bulls Research  | 11 28 2008 17:26:44 +0000
Industry : Equity Research/AnalyticsFunctional Area : Equities(Markets)
Keywords : Risk Deflation
Activity:  145 views;  last activity : 07 06 2010 20:18:09 +0000
What is the real risk of deflation: Falling prices or demand?
 
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Falling Prices Vs Demand
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Arguments in: "Deflation"
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Falling prices are the actual cause of deflation People who owe more amount of money continue to buy more amount of commodity leaving others with no choice.

By Vikas Kumar, Sr. Associate,bulls Research  | 11 28 2008 17:26:44 +0000
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I think prices are dependent of demand. Considering the arena of 1930 when there was a deflation the prices fall due to the demand in the commodities.

By Hitesh Moghe, Associate, Barclays  | 11 28 2008 17:31:17 +0000
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