tag:blogger.com,1999:blog-1740670447258719504.post6315290388272331596..comments2024-03-27T03:00:27.024-04:00Comments on Facts & other stubborn things: Would there have been lots of deflation without the Fed after all the initial crisis stuff was done?Evanhttp://www.blogger.com/profile/12259004160963531720noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1740670447258719504.post-16695067787003653802013-01-06T00:34:36.828-05:002013-01-06T00:34:36.828-05:00Exactly what's wrong with deflation? Why shou...Exactly what's wrong with deflation? Why shouldn't prices go down rather than go up? Is there an obligation to maintain the cash-flow necessary for over-indebted borrowers to service their debt?Herbhttps://www.blogger.com/profile/12963603930535052329noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-61191564242265607432012-12-31T19:05:08.362-05:002012-12-31T19:05:08.362-05:00I'd expect, maybe, some mild deflation in CPI,...I'd expect, maybe, some mild deflation in CPI, but I'm not sure what exactly the Fed did to prevent deflation. In fact, Bernanke seems more worried about relatively high inflation. Bernanke couldn't even really stop the collapse in the value of mortgage-backed assets; all he really did was shore up a banking system with liquidity (most of which hasn't entered circulation since it was injected).Jonathan M.F. Catalánhttp://www.economicthought.net/blognoreply@blogger.com