Jan 8 (Reuters) - Executives at Vanguard Group, the No. 1 U.S. mutual fund company, said on Thursday deflation is a real risk for the global economy.
Vanguard Chief Investment Officer Tim Buckley said during a live webcast that falling prices are not something to be celebrated, especially in a developed economy that relies on consumption to fuel gross domestic product growth.
As consumers hold off buying things, GDP shrinks, creating a vicious cycle, Vanguard Chairman William McNabb added.
Vanguard Group manages $3.1 trillion in assets. (Reporting By Tim McLaughlin; Editing by Steve Orlofsky)