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Deflation risk and trade slump cast chill over global economy

Posted on 03 October 2016

IMF and WTO warn on threats posed by low inflation and tepid response by governments to slow growth. The world economy is at risk of slipping into a deflation trap and faces a historic slump in global trade that should serve as a wake-up call for governments around the world, two leading economic institutions have warned.
The International Monetary Fund warned on Tuesday that a “broad-based phenomenon” of low inflation, fed by a collapse in commodity prices and faltering demand, risked deteriorating into a full-blown deflation trap, particularly in advanced economies. Governments needed to join central banks, which were increasingly seen to be running out of options, to do more to boost growth and raise incomes, it said……………………………………..Full Article: Source


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