Raghavan, Anita; Schoenberger, Chana R.; Kelly, Tim
June 2009
Forbes Asia;6/8/2009, Vol. 5 Issue 10, p61
The article examines the possible threat of deflation due to fall in prices across the world. As cited, deflation can lead to a downward twist of wage cuts, layoffs, price cuts and lost production and in some cases may lead to bankruptcy as well. It is stated that in areas of Europe, the gross domestic product (GDP) and wages are already in deflationary mode and unemployment is above 8% among the 16 countries that use the euro.


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