Are commodities in a good or bad deflation?

Monday, 19 October 2015

Here is a terrific video from Russell Napier at the FT discussing whether deflating emerging markets and commodity prices are generating a “good” or “bad” deflation for the global economy. I agree with more or less everything in the video and will only add that although the US GFC experience will not be repeated, there will be parts of the world more exposed to EMs and commodities where the outcome will be much worse than the GFC in terms of borrowing costs. You know where I’m talking about! Must watch:

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.