falling prices

With talk of outright falling prices gaining steam in the U.S., it pays to reexamine what happened in Japan during its "lost decade." Turns out that Japan had several buffers -- including less dependence on housing -- that the U.S. is now lacking.

May's 0.3% slide in the producer price index confirmed that low-inflation conditions continue in the U.S. economy. A sudden jump is always possible due to a surge in oil prices, but for now, deflation is the greater risk.