All posts are my personal opinion
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Don't Fear Oil Prices and Deflation
Most Americans are happy that the price of oil has tumbled, helping consumers while hurting nasty regimes abroad. There are always worriers among us, though, and what has them alarmed today is that this decline will tip the U.S. into a damaging round of deflation. There's no need to join them in their gloom. Deflation isn't something we should fear. What matters is what's causing prices to decline: an increase in productivity or a decline in economic activity. Only in the second case is there a serious danger that the Federal Reserve should try to respond to. Similarly, rising prices can be a sign that monetary ... (full story)