The document discusses the risks posed by deflationary forces in the global economy due to below-trend growth and falling energy prices. It notes two main risks: 1) Low inflation hurts borrowers' ability to repay debts as nominal growth slows, increasing debt burdens as a percentage of GDP. This is seen in Greece and emerging markets. 2) Policymakers lose control of real interest rates and wages in a deflationary environment due to downward rigidities. The document then discusses how India has benefited from global deflation, with nominal GDP growth converging with real GDP growth, implying deflation. This convergence is having peculiar effects across sectors in India. The implications discussed are for investors, fiscal policymakers, and monetary policy