Why is Poland flirting with deflation? The decline of Polish ‘new investment’ prices is of course a huge opportunity

Polish deflation is actually a good sign

• Don’t bother about Polish deflation – as long as nominal wages keep increasing
• In Poland, employment is rising by 1.5% a year and wages are growing by 4% annually. 
• So why is the country flirting with deflation? 
• Merijn Knibbe for the Real World Economics blog says that rapidly growing Polish productivity is causing incomes to rise and the prices of goods and services to fall. 
• Deflation driven by rising wages should be welcomed.

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