Blinder stresses the importance of timing with regard to the Fed's monetary policy. Though he briefly mentions it, Blinder states that the Fed must be careful of deflation rates when they begin to tighten up their policies (pg. 375).
The first article suggests that deflation may be a problem in the coming months and the second briefly describes the dangers of deflation. Is the U.S. economy in any real danger of facing significant deflation problems or is Minneapolis Federal Reserve President Narayana Kocherlakota speaking hyperbolically when he says "I'm more worried about inflation being low"?
Fed Official More Worried About Deflation Than Inflation
http://finance.yahoo.com/news/why-inflation-remains-tame-while-124356149.html
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