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Ignore Rising Inflationary Forecasts, Warns Economist David Levy.

NEW YORK -- The government is pouring money into the economy. The money supply is growing rapidly. Analysts everywhere warn that the result will be surging inflation in the years ahead.

"Not so fast!" says economic forecaster David Levy in the latest (May 27) Levy Forecast, just distributed to clients of the Mount Kisco, NY-based Jerome Levy Forecasting Center (www.levyforecast.com).

In his most recent Levy Forecast, the nation's oldest newsletter devoted exclusively to forecasting and analyzing economic conditions, Levy says the "chorus of inflation warnings" is all wrong. On the contrary, he says our nation stands "on the eve of a great era of disinflation and deflation."

Levy points out that in the years ahead, the combination of chronic unemployment and chronic economic weakness -- in spite of the huge fiscal boost from the federal government -- will keep margins under pressure, companies focused on cost controls, commodities cheap, and, most importantly, wage costs under pressure.

On the outlook for 2009, Levy argues that GDP growth and corporate profits could improve somewhat in the second quarter, but this will likely not herald the recession's end.

About The Jerome Levy Forecasting Center

The Jerome Levy Forecasting Center LLC--the world leader in applying the macroeconomic profits perspective to economic analysis and forecasting--conducts cutting-edge economic research and offers consulting services to its clients. The goal of the Levy Forecasting Center is to improve its clients' business and investment performance by providing them with powerful insights into economic risks and opportunities, insights that are difficult or even impossible to achieve with conventional approaches to macroeconomic analysis.

Note: The full May Levy Forecast is available in PDF if you contact Andrew Edson at 516 850 3195 or Andrew@edsonpr.com.
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Publication:Business Wire
Date:May 27, 2009
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