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I appreciate the explanation, thank you. So it seems that the Fed would much rather err on the side of inflation than potentially misstep into deflation. As som
by IAmWorried 5y ago
I appreciate the explanation, thank you. So it seems that the Fed would much rather err on the side of inflation than potentially misstep into deflation. As someone who owns no assets, I would really love for the inflation to stop, but admittedly I have no idea what deflation is like, and historically it hasn't been pretty.
- AnimalMuppet 5y agoUnder current conditions, the Fed would rather err on the side of inflation. There are conditions under which that would not be true.
- IAmWorried 5y agoInteresting, which conditions would those be? My intuition is prolonged periods of high inflation?
- AnimalMuppet 5y agoYes. Late 1970s, early 1980s. Inflation hit 14%. The Fed wasn't really worried about deflation in those days...