We have to stop talking about deflation in the United States, the euro zone and even Japan

Admittedly, headline inflation and core inflation are zero in 2020 as a result of the COVID crisis , but this should not lead to talk of deflation. This is because: In 2021, inflation will pick up again - at least in the United States and in the euro zone - thanks to the improvement of the economy, the need for companies to pass their costs on to their prices and the upswing in commodity prices; Even if inflation remained very low in the United States and the euro zone, and also in Japan, interest rates are so low as a result of the expansionary monetary policies that real interest rates would still be lower than real potential growth, which rules out the prospect of deflation. In a deflation situation, real interest rates are abnormally high relative to growth.