iPlayer Radio What's New?
Image for Deflation

Listen now 18 mins

Listen in pop-out player


18 minutes
First broadcast:
Friday 21 February 2014

Deflation is something of an economic bogeyman - but is it real, and does it threaten to drag the eurozone into Japanese-style stagnation? Presenter Ed Butler speaks to economists Steve Hanke, who calls the spectre of falling prices a 'big phoney', and Paul de Grauwe who warns it could mean permanently higher prices.

We speak to William Saito, a Japanese government advisor about the role that demographics have played in compounding the country's stagnation. And we look in particular at Greece, where prices were falling at an annual rate of almost 3% at one point last year. But is deflation necessarily a bad thing for the Greeks? And have the price drops been showing up in the places they need to in order to restore the Greek economy to health?



  1. Image for BBC Business Daily

    BBC Business Daily

    Examining the big issues facing the global economy, Business Daily demystifies the world of money.…

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Added. Check out your playlist Dismiss