The article points out a striking similarity between the U.S. today and Japan's slide into deflation.
Westerners think deflation is so unlikely because we haven’t really seen it since the Great Depression. Janet Yellen ...doesn’t even seem to think it is a significant issue. Yet if you don’t think it can happen here, just ask the Japanese.
... Deflation crept up on Japan slowly. There was even a big head-fake in 1996-7, a short-term bounce in inflation before things headed down again. Maybe it’s just a coincidence, but the path of the market-based PCE here in the west in recent years looks ominously similar.
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