Question
1. Read the following two newspaper articles on the recent two deflation episodes in Australia: http://www.smh.com.au/business/the-economy/deflation-whats-so-wrong-with-falling-prices-20160522-gp1921.html https://www.abc.net.au/news/2020-07-29/inflation-cpi-abs-june-quarter-2020/12501934 Why is persistent deflation considered as one of
1.Read the following two newspaper articles on the recent two deflation episodes in Australia:
http://www.smh.com.au/business/the-economy/deflation-whats-so-wrong-with-falling-prices-20160522-gp1921.html
https://www.abc.net.au/news/2020-07-29/inflation-cpi-abs-june-quarter-2020/12501934
Why is persistent deflation considered as one of the greatest threats to a healthy economy? Japan has suffered from chronic deflation since the latter half of the 1990s. Will Australia become the next Japan? What do you think are crucial factors/policies that could prevent Australia from repeating Japan's nightmare?
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