Real vs Money Incomes – the one thing we need to understand during deflationary times (with an illustration from Greece and Cyprus)

In inflationary times, real income growth is always good news. However, in deflationary times, real income growth may well reflect a deepening recession (or even a depression). This is important to know lest deepening recession is presented as… economic recovery (as has been the EU’s wont in recent times).

How can real income growth reflect a deepening recession?

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Tags: Cyprus, deflation, EU, euro, Greece, inflation, real income

This entry was posted on March 13, 2016 at 9:51 pm and is filed under Athens, Cyprus, democracy, economics, Protaras. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Real vs Money Incomes – the one thing we need to understand during deflationary times (with an illustration from Greece and Cyprus)”

keithpp Says:
March 13, 2016 at 9:52 pm | Reply
All is not well with the Cyprus economy, its tourist industry is collapsing due to greed and stupidity, and since report referenced below was written, the decline has worsened.

– Collapse of the tourist economy in Cyprus and the need to divest

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