Will Inflation Soon Turn to Deflation?

July 07, 2023

by James Rickards Daily Reckoning

Can you expect continued inflation — or a trend toward disinflation and possibly even deflation?

That’s probably the most important question in economics today.

This is more than a matter of competing narratives. The question goes to the heart of modern economics (the so-called Neo-Keynesian consensus) and the models used in economic forecasting.

In truth, it goes to the heart of economics generally and helps to explain why so many forecasts are so badly wrong.