US follows Japan into a lost decade

For those who think the US won't suffer a lost decade of persitant deflation like Japan - think again. Here are two awkward facts that suggest otherwise.

We often hear that America won't suffer a lost decade' and persistent deflation like Japan, says Capital Economics. The Fed slashed interest rates and printed money much faster than its Japanese counterpart, so the danger should be averted. But this analysis overlooks two awkward facts.

554_P06_GDP-yoy

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.