Even When There Is Inflation, the Fed STILL Fights Falling Prices

Source: Ludwig von Mises Institute
by Brendan Brown

“Under any remotely sound money regime the aftermath of war and/or pandemic is highly likely to feature a sharp decline in the prices of goods and services on average. Even under unsound money regimes there are powerful forces operating towards lower prices once the war/pandemic recedes. Strong injections of monetary inflation, however, can overpower them. The Fed and all the foreign central banks which follow its lead and/or doctrines are apparently of the intention that this time the decline in prices will not take place. Instead, they state the aim of their monetary policies, to be achieved within two years, as a decline of the inflation rate from present near-term highs to 2 percent.” (06/13/22)

https://mises.org/wire/even-when-there-inflation-fed-still-fights-falling-prices