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URL:  http://boards.fool.com/cola-14711714.aspx

Subject:  COLA Date:  4/5/2001  8:37 PM
Author:  TheVlad Number:  28934 of 76235

Now, a lot of folks have COLA (cost of living adjustments) adjustments to their salary each year to account for inflation. Some economists now are saying that the U.S. may be entering a deflationary period.

So, instead of being 2.3% of whatever, inflation next year may be -5.0%. Does it mean that the salaries will be lowered by 5% :-)?

On a serious note, this undescores the importance of not having any debts. In the deflationary period, debt could really easy destroy you financially.

Vlad
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