So without the Fed response to the initial credit crunch I could see severe deflation.
I had always assumed that aside from some positive impact on expectations most of the rest of the Fed's work has been just pushing on a string, and that we all wanted the Fed to do something bold so that we could go from "some positive impact on expectations" to "a lot of positive impact on expectations:. I don't know how to date this - maybe from mid to late 2009 we had cleared the credit crunch and entered the doldrums? Assuming the Fed didn't actually raise rates I had assumed that in the absence of all the balance sheet expansion we'd still be bumping along - certainly at lower inflation but not severe deflation - for the last several years.
Is that sense I've had wrong?