- cross-posted to:
- worldnews@lemmy.ml
- cross-posted to:
- worldnews@lemmy.ml
According to an article in The Financial Times, declining electric vehicle prices in China suggest a potential for “deflation.”
However, this assertion is directly at odds with a study conducted by the Bank of International Settlements (BIS), which examined 140 years’ worth of data across 38 different economies and found that the connection between deflation and economic contraction is “weak”.
Exactly the whole narrative is nonsense, and EU would’ve probably been fine if they continued having good relations with Russia and China giving them access to cheap energy and manufacturing. Now, things aren’t looking so hot.