It's impossible to have inflation (meaning the value of money relative to goods is decreasing) and depreciation (meaning the value of money relative to goods is increasing) at the same time.
The value of money is defined as how much "stuff" you can get with it. You can't have inflation (meaning a fixed amount of money buys less stuff in the future) and item depreciation (meaning a fixed amount of money buys more stuff in the future) at the same time. Since prices are declining, that's deflation, meaning the value of money relative to goods is increasing over time, even though the money supply is likely increasing.
The guy who wrote the report has a PhD in economics. He knows what he's talking about.
Actually, Japan is currently experiencing deflation. It's a big problem because they are also in a recession, but interest rates are about zero, so the central bank can't reduce them to help out.
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It's impossible to have inflation (meaning the value of money relative to goods is decreasing) and depreciation (meaning the value of money relative to goods is increasing) at the same time.
The value of money is defined as how much "stuff" you can get with it. You can't have inflation (meaning a fixed amount of money buys less stuff in the future) and item depreciation (meaning a fixed amount of money buys more stuff in the future) at the same time. Since prices are declining, that's deflation, meaning the value of money relative to goods is increasing over time, even though the money supply is likely increasing. The guy who wrote the report has a PhD in economics. He knows what he's talking about.
Actually, Japan is currently experiencing deflation. It's a big problem because they are also in a recession, but interest rates are about zero, so the central bank can't reduce them to help out.