Central Bankers Eye Unusual Steps (Reuters): “Central bankers from around the world Sunday discussed ways to prevent deflation and kick start lackluster global growth, including unorthodox policies such as buying up financial assets. At an annual meeting of the Bank for International Settlements (BIS), bankers grappled with mounting concerns that falling prices in top industrialized nations could spiral into a deflationary cycle that undermines growth. ... Designing monetary policy to achieve a targeted inflation rate can be helpful not only to moderate price pressures, but also to boost prices when they fall too low, some said.” Comment: it does make one wonder if all the fear mongering about deflation is really just a cover to justify a high-inflation reality.
