Financial Times FT.com

Danger of persistent deflation is seen as low

Published: January 2 2009 02:00 | Last updated: January 2 2009 02:00

Britain seems unlikely to fall into a spiral of persistently falling prices and wages that would create a deeper and longer recession, the majority of economists believe.

But even if the danger of deflation is not imminent, a majority still want to see the Bank of England unleashing unorthodox weapons to boost demand and alleviate the credit crisis.

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