3/30/10

Sure - disinflation continues ...

Mark Thoma at "Economists'view" informs us that inflation has been falling for a while and is not going to stop the descend despite many worries. Well. we predicted this outcome 5 years ago [1, 2]. Moreover, the next stage is a deflationary period, also predicted and confirmed many times [3].

Below is the most recent figure with the 1.1% GDP deflator reading in 2009 from my monograph "Deterministic mechanics of pricing". It is only 2 years before the overall price (GDP deflator) will sink below the zero line. ( The original prediction was obtained in 2005 and has been showing an excellent predictive power since.)

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