Is pump priming should resorted to at a time of deflation?

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2026-05-13 19:20

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Yes, pump priming, which involves government spending to stimulate economic activity, can be an effective response during deflation. By increasing public expenditure, it can boost demand, encourage investment, and help counteract falling prices. This approach aims to restore consumer confidence and economic growth, making it a viable strategy in deflationary periods. However, careful consideration of fiscal sustainability and potential inflationary pressures is essential.

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