How the Iran war could end up causing a burst of deflation

Business Insider | 26-08-2026 04:14pm |

BCA Research's chief investment strategist Marko Papic predicts that the US and world economy could enter a period of deflation by the end of this decade. He argues that the Iran war could trigger a surge in capital expenditure across industries, leading to over-investment and downward pressure on prices. Papic notes that deflation can be harder to resolve than inflation, posing a potential challenge for policymakers.

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