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Could the Economic Impact of COVID-19 Lead to Deflation?

There are signs an economic recovery is in the early stages. However, the U.S. unemployment rate is approaching 20%, the rate and shape of the recovery is still up for debate, and at the very least, it seems reasonable to assume that some parts of the economy will likely recover faster than others. If COVID-19 picks up again later in the year or other unforeseen circumstances cause the economy to continue to contract, could we see deflation?

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