Remember that US interest rates are 2% , Japan 0.5% and inspite...

  1. 86 Posts.
    Remember that US interest rates are 2% , Japan 0.5% and inspite of these low interest rates, there is no increase in asset values.

    US is increasing the budget defict........All these point to a long period of Stagflation, with increased inflation and no growth.

    The real growth in US is negative if you consider inflation and so is Japan. With 11% inflation even India growth of 9% is negative. I thought that Economic Theory 101 is Negative real growth is deflation.
 
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