  Economic Deflation Concerns in the United Kingdom (2006) Ref: econ0001 This project examines the concerns of deflation in the UK. Deflation is defined as a sustained decline in an aggregate measure of prices such as the rate of the retail price index (RPI), Deflation is a generalised and persistent decline in most, if not all, prices of goods and services (Buiter, 2003). It is normally associated with falling aggregate demand leading to a negative output gap where actual GDP is less then potential GDP. With Asian economics already experiencing declining prices, the worry has been that deflationary pressures could deepen and even spread globally. The focus of this research is to distinguish if deflation is present in the UK manufacturing sector and whether there are signs of general deflation in the economy. 13,000 words - 70 pages in length Excellent use of contemporary literature Excellent use of statistics and economic models Will help you design your own research project Ideal for economics and finance students Chapter One: Literature Review Chapter Two: History of Deflation The Great Depression Why the Great Depression happened Recent experiences of deflation Chapter Three: Economic theory of Deflation Definition Economic Determinants of Deflation Chapter Four: Possible Causes of Deflation Deflation Drivers Costs of Deflation Chapter Five: Policy Response Policy before the Onset of Deflation Policy Once Deflation Has Set In Chapter Six: Risk of Deflation in the UK Indicators of Deflation Price indicators Excess capacity and Output gap Inflation, Deflation and the Business Cycle Calculating the indicators Obtaining potential GDP using statisticians method Chapter Seven: Econometric modelling of Deflation/Inflation The Theory Model One, OECD GDP Output Gap Model Two, Output gap calculated from estimated potential output Model three, Manufacturing Prices and Output gap Model four, 25 percent output gap Deductions 
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