Experts: Fear Deflation Now, Not Inflation Later

Monday, July 27, 2009 3:08 PM

By: Dan Weil

Many experts are growing concerned about the inflationary implications of the massive fiscal and monetary stimulus that has been implemented around the globe to end recession.

But the first worry is deflation, many point out.

In a recent speech, World Bank Chief Economist Justin Lin explained that a failure to eliminate excess capacity worldwide may spark a “deflationary spiralâ€