2 ms·
0% is also way too close to deflation, which the Fed wants to avoid more than anything else. With deflation, you stop consuming because tomorrow the prices will
by seanmcdirmid 1y ago
0% is also way too close to deflation, which the Fed wants to avoid more than anything else. With deflation, you stop consuming because tomorrow the prices will be lower. The economy can easily sink into a death spiral.