The Great Inflation/Deflation Debate

Buttonwood searches for consensus:

Last week, we launched our economics channel with a debate on whether inflation or deflation is the greater threat. Scroll through the contributions and you will discover either that "Tough deflationary times lie ahead" or that "Eventual inflation is inevitable".  Since this is the central question of economic policy at the moment, such a discordance of views is rather disturbing; much is made of the debate on global warming but the scientific consensus is overwhelmingly on one side on that issue. On economics, governments are being forced to choose in matters of fiscal austerity, where the debate is almost 50-50.