Remember the Lost Decade? Stiglitz Deflation Threat Pushes Fed to Keep 2010 Rates at Zero

by Benjamin Domenech on 9:39 am October 2, 2009

“The U.S. faces the possibility of deflation for the first time since the Eisenhower administration, a threat that may prompt the Federal Reserve to keep interest rates near zero through next year… A sustained price drop might set off a chain reaction in which lower profits force employers to pare wages and payrolls.”

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