Drastic price drop causes shortage instead of massive surplus.

The impact of a sharp decline in real estate prices would be far reaching.

China and Hong Kong have seen prices plummet recently too.

A long awaited fall in price

The conflict in Georgia has been followed by a sharp decline in investor confidence.

Most Americans do not suffer greatly from the dollar's sharp fall, as foreign sellers have to make price adjustments for the US market.

WASHINGTON, DC The sharp drop in the price of crude oil since late June has been grabbing headlines worldwide and producing a lot of contradictory explanations.

Falling prices have paralyzed Japan's economy for a decade.

The Great Real Estate Bust of 2008

The erosion in public support for Bush s Iraq policy is stark.

The sharp fall in oil prices, according to this view, will make it even harder for these countries' central banks to achieve the 2 annual inflation rate that most have targeted in fulfilling their price stability mandate.

The sharp fall in long term rates induced investors to buy equities, driving up share prices.

The sharp fall in export income is rapidly changing the situation, but Russia is starting from a comfortable position.

Falling consumer prices should thus be viewed as a good sign.

Falling house prices are another classic indicator of a vulnerable economy, though the exact pace of decline is difficult to assess.

The sharp decline in energy prices is the primary reason for the recent drop in the inflation rate.

But the recent collapse in oil prices could change this dynamic.

We are witnessing a decline in prices for small apartments that is unprecedented in the last ten years.

The collapse in GDP in the first quarter of 2009 was also more substantial than previously thought.

It was at that very time that the sudden economic decline began, causing discontent.

The sharp fall in house prices that followed caused a dramatic downturn in household wealth, leading to lower consumer spending and an overall fall in GDP.

Yes, sharply rising food prices are an important factor in boosting headline inflation in Asia.

No one now denies that the past year s sharp downswings in housing and equity prices, which followed long upswings far above historical benchmark levels helped to trigger and fuel the crisis.

Moreover, the sharpest decline occurred more than four decades ago, in the late 1960 s and early 1970 s.

In contrast, only Saudi Arabia can flood the market and reduce prices far below their current level.

CAMBRIDGE The rapid rise in the price of oil and the sharp depreciation of the dollar are two of the most noteworthy developments of the past year.

Given this, the recent sharp decline in world oil prices obviously represents a major shock large enough, when combined with the effect of increasingly strict Western sanctions to provoke a sizeable recession.

But there is nothing to stop the decline from continuing once it reaches that point.

Inflation, unemployment, sanctions, and falling oil prices have created a perfect storm, threatening the stability of the regime.

So the world market was flooded and prices dropped.

Slack labor markets with rising unemployment rates will cap wage and labor costs. Further falls in commodity prices already down 30 from their summer peak will add to these deflationary pressures.

The same kind of erosion in home prices could occur in many cities around the world.

But declines in home prices will not occur quickly when central banks begin to raise interest rates.

All of Asia's economies that suffered in the recent crisis, including Japan, have seen a fall in their dollar price level.

The cure depends on which of three modes define the fall in asset prices.

Further falls in commodity prices already down 30 from their summer peak will add to these deflationary pressures.

The mass unemployment and collapse of commodity prices brought ruin to both city workers and to farmers.

A sharp decline in oil prices does, however, provide a rare political opportunity to introduce more carbon pricing.

No one wants to live with the trauma of the deflation (falling prices) that Japan has repeatedly experienced.

Germany, with its notoriously low inflation rate, may be among the first countries to experience declining prices.

Weak economic performance in these countries is even more puzzling in view of the sharp drop in their birthrates decades ago. Their population pyramids are now skewed towards middle aged people who are in their most productive years and relatively free from the burden of raising children.

The effects of fiscal austerity a sharp rise in taxes and a sharp fall in government spending since the beginning of the year are undermining economic performance even more.

Weak economic performance in these countries is even more puzzling in view of the sharp drop in their birthrates decades ago.

Previous reactions to declines in household wealth indicate that such a fall will cut consumer spending by about 500 billion every year until wealth is restored.

Rapidly falling prices and extremely elastic demand will sustain rapid growth in these sectors' share of total economic expenditure.