by John H. Makin
American Enterprise Institute
April 07, 2014
Economic Outlook
Inflation is falling in the United States, Europe, and China, suggesting a real threat of impending deflation that could cripple the global economy. Deflation is especially dangerous because it is self-reinforcing; once it takes hold, economic conditions will get much worse before they get better. Central banks in the United States and around the world must end their complacency and respond preemptively to the threat by monitoring inflation rates and undertaking aggressive monetization.



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