What is the deflation rate right now? What causes the deflation? What should the Fed do?
Asked By: AWB - 12/15/2010
Best Answer - Chosen by Asker
Right now we are not in deflation. We are in inflation... More
Answered By: Hayden - 12/15/2010
Additional Answers (3)
there is no deflation right now. There is moderate inflation. Deflation is caused by decreasing amount of money in the economy, e.g. due to decline of credit activity.
Answered By: Bored Goblin - 12/15/2010
We don't have deflation now, we have very low inflation. Deflation is when the consumer price index actually goes down over time, instead of up. Deflation is very dangerous, because it creates an additional reason for people to postpone consumption. If we believe prices are going to fall, we will not purchase... More
Answered By: John M - 12/15/2010
The answer is the Fed is tracking inflation wrong, we had .6% inflation in September and October alone (according to a secrete inflation tracker Wal-Mart uses that is more accurate). The Fed needs to stop the QE and be disbanded by congress.
Answered By: Influence of Bastiat - 12/15/2010
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