Wednesday, July 21, 2010

More Signs of Deflation

Following up on my earlier post today about deflation, the blog Macro and Other Market Musings had a good graph on expectations of future inflation. Here it is:



The recent history shows a steady decline in long term inflation. The Free Exchange blog at the Economist noted how if it was in Congress, this would be the one thing it would ask Bernanke about.
As for his testimony, Bernanke saw unemployment staying high, above 7% until after 2012. The reaction, the stock market tanked.

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