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The Fed will fight across the board deflation like crazy because that's how the economy ends up in a depression.
by matwood 3y ago
The Fed will fight across the board deflation like crazy because that's how the economy ends up in a depression.
- 88913527 3y agoWe did have high inflation for a year, and were told it was temporary, before tools were deployed. Would a sustained period of deflation be met with a similarly lagged response?
- eropple 3y agoMy understanding (I am not an expert) is that tools for dealing with deflation are much less effectively deployable and have ripple effects that can significantly damage the real economy.