Are deflationary recessions real? Most investors seem to think so, but if you look at consumer price levels during periods of recession since after the great depression, it’s not so clear. A deeper look at the end numbers shows that deflationary recessions are not very deflationary at all, at least not in terms of end-consumer prices from beginning to end of any given recession since the Great Depression.
With the US/China trade dispute evolving more and more into a protracted war by the day, the question of recession is becoming more acute. This is especially