"when below 2 % only very slowly and deceleratingly moving further down
if below 2% and disinflation is instead speeding up
preferably reversing direction ie increasing inflation back up toward the 2 % ceiling
or at least slowing the disinflation rate toward zero
long before the inflation rate hits zero
"I believe a determined
central bank could, and should, work to eliminate
deflation "
linoleum on concrete floor at zero inflation !!!
there shall be no core index deflation allowed
this seems to miss the japanese experience
ie a mite bit of deflation doesn't necessarily touch off runaway deflation
in fact it looks as if you can fine tune this gig
so you have a say -2% floor and continue on BAU
but no ben is a fierce uncompromising deflation preventer
" When deflation became a significant risk in late 2010
or at least a moderate risk in late 2010,
we used additional balance sheet
tools to return inflation close to the 2% target"
see the 2010 disinflation?
not as big as the 08-09 disinflation
but it dropped the rate to 1%
first of all how does he know his balance sheet moves
caused the inflation rate rebound ?
second was there really a deflation risk in late '10 ?
how was the system to break below 1%
okay japan did it ...so maybe
what sort of deflation did ben anticpate ?
japanese toe dip deflation
or a break thru accelerating deflation ala 1930 USA ?
what were the tell tale signs
of the deflation risk continuing on below1% ?
and what demonstrates it was ben's balance sheet moves
that actually caused the reversal of direction ?
did he pull off a similar turn in 09 ?
ya he did
and prolly he halted and restarte QE ?
at about the time of those 2 turns in late 09 early 10
maybe this credo point :
"... when short-term interest rates hit zero,
the tools of a central bank are ...not exhausted
... there are still other things that the central bank
can do to create additional accommodation. "
prior proof ??
what of the 2% low flex rubber ceiling ?
oh this is a stupid questioning
not stupid questions perhaps
but really stupid to ask
if you expect a clear answer
