inflation from earlier, high levels. At the same time, history also teaches that the stability of consumer prices might not be … that were not preceded by inflationary pressures. Conversely, history shows that many periods of deflation, based on rising …

The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of … continuing low inflation, but also its coexistence with rapid growth and low real interest rates. Unfortunately, the analysis … also leads to the conclusion that rising inflation, unwinding financial imbalances, or both, could easily follow the …