The National Bureau of Economic Research (“NBER”) in the USA confirmed that the US economy commenced its recession in December 2007 (NBER indicators and December ’07 time circled in red to the right). Additionally, the U.S. government enacted an emergency rescue of Citigroup Inc. in November. Ironically, just five years after US Federal Reserve Chairman Ben Bernanke helped remove the risk of deflation from policy initiatives, the threat is returning on a global scale, as the financial crisis and global economic slump is pulling inflation lower.
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