Is the World Economy Heading for the Great Deflation? Read More... (QNB - Qatar National Bank SAQ)

(Source: QNB - Qatar National Bank SAQ) Download the PDF version of this weekly commentary in  English or  عربي A significant decline in commodity prices in recent weeks-coupled with a worsening global economic outlook and major corrections in global equity markets-could result in a Great Deflation, namely a vicious circle of price/asset deflation around the world. The risk of such a scenario occurring is rising as crude oil prices tumbled last week and major equity markets witnessed a significant correction. If these trends continue and unless governments around the world stimulate domestic demand through additional government spending, a Great Deflation is likely to occur and...