Even When There Is Inflation, the Fed STILL Fights Falling Prices
Estimated Reading Time: 5 minutes
Under any remotely sound money regime, the aftermath of war and/or pandemic is highly likely to feature a sharp decline in the prices of goods and services on average. Even under unsound money regimes, there are powerful forces operating towards lower prices once the war/pandemic recedes. Strong injections of monetary inflation, however, can overpower them. […]