Week 2 Discussion 1

WSJ, 02/12/16 – Low Inflation, Which Complicates Fed Plans, Cheers Consumers

Questions:

1. Why is the Fed concerned about low inflation?
2. What is wrong with deflation?

There’s plenty of online material regarding deflation. Check out this Paul Krugman article: Why is Deflation bad?

Hope these questions/suggestions help develop

your posts.
low_inflation__which_complicates_fed_plans__cheers_consumers___real_time_economics___wsj.pdf
discussion_help.docx
fed_minutes_reveal_officials____concern_about_low_inflation___wsj.pdf

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