occurs when unwanted deflation needs to be prevented or combated, but the central bank’s conventional monetary arsenal is …

After an absence of almost half a century, the spectre of deflation is once again haunting the corridors of central … banks and finance ministries in the industrial world. While preventing or combating deflation poses some unique difficulties … not present in preventing or combating inflation, deflation can be prevented and, if it has taken hold, can be overcome …

should be common or that a policy close to the Friedman rule and thus some deflation is optimal. Finally, a formal ‘baby …