China is teetering on the brink of deflation – where prices fall, rather than rise.
Essentially, it's the opposite of what's happening in the US – and that could be a huge red flag for the global economy.
Deflation "is a very bad sign macroeconomically," economist Richard Koo said in a recent episode of Bloomberg's "Odd Lots" podcast.
"Individually, [people trying to save money] might be doing the right things, but collectively, they may be killing the economy."
But if those policies don't work, there could be pain ahead for the global economy.
Persons:
it's, Richard Koo
Organizations:
Service, US Federal Reserve, Gross, Apple, Nike
Locations:
China, Wall, Silicon, Beijing, Japan