Japan is a manufacturing power house that experienced deflation after the stock market bust.
China is the factory of the world right now and is in a deflationary spiral after their housing market burst.
The US was the manufacturing power house in the 1920s and experienced deflation in the 30s after the 1929 crash.
I'm starting to think deflations are only possible in manufacturing countries post crash because the manufacturing is onshore and producers have to slash prices and can deliver to local population cheaply post financial crash.
Are deflations only possible in countries that are both manufacturing power houses AND experienced some kind of financial crisis?
byu/PopularRightNow inAskEconomics
Posted by PopularRightNow