Faster Growth Could End Fed’s War on Deflation
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March 25 (Bloomberg) -- The aggressive stimulus programsundertaken by the Federal Reserve have partly been motivated bya growing fear of deflation.
About a decade ago, 12 of the Fed’s top economists wereassigned to a study of deflation in Japan. They concluded thatthe best way to combat chronically falling prices was toinitiate a huge stimulus, and quickly. That’s exactly what thecentral bank has done.