Since the hyper inflation of the 1970's the Federal Reserve has been plagued with fighting inflation, the number one bad guy of the economy. Now we are in a deflationary cycle and the Fed is using all the tricks in its bag to end this decline and turn the economy around.
One theory being thrown about is that if you create inflation, deflation will go away. Now, this is the wildest proposal to come out of the mouths of economists. Gregory Mankiv and Kenneth Rogoff are advocating 6% inflation for at least a couple of years.
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