(click on image to enlarge)TW: This graph shows how truly extraordinary the current deflationary environment is. It has been nearly 60 years since we experienced year over year deflation. As one can see from this graph which goes back 100 years, the other instances of deflation occurred either the result of wartime dislocations or the Great Depression.
One can also see the relative price stability the U.S. had experienced post WWII. But then in the previous 50 years we had had two World Wars and a Great Depression, so which is the exception that period or the one which just ended?
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