UK at risk of Japan-style deflation - papers

Laura Miller
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Britain is at risk of sliding into a Japan-style period of deflation, according to a Bank of England policymaker.

He also warns the UK may be even worse-equipped than Japan to escape such a scenario. Adam Posen, a member of the Bank's Monetary Policy Committee (MPC), said Britain and the US were unlikely to face repeated recessions, the Telegraph reports. But in many ways their plight was "scarier" than Japan's, said the renowned Japan expert. In speech at the London School of Economics, he said: "The UK worryingly combines a couple of financial parallels to Japan with far less room for fiscal action to compensate for them than Japan had." He also warned the banking system's continued troub...

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