Australia faces shrinking inflationary pressures.
Wage growth is falling.
Credit growth is shrinking.
Growth of currency in circulation is also slowing. The fall below 5% warns of a contraction.
One piece of good news is that Chinese monetary policy seems to be easing. After a sharp contraction of M1 money stock growth in January, February shows a partial recovery. Collapse of the Chinese property bubble may be deferred a while longer.
Which is good news for iron ore exporters. At least in the short-term.