Deflation, Rather Than Inflation Was Always The Bigger Risk

  • In 2010, a host of people wrote an open letter to the Fed warning against the inflationary risks of unconventional monetary policy.
  • Recently it turned out that none of these signatories repented.
  • We’ll argue that they got their risk assessment inside-out and explain why deflation was always the much bigger risk.

To The Fed’s Critics: Deflation, Rather Than Inflation Was Always The Bigger Risk | Seeking Alpha