In my formative years, inflation was the enemy. Oil shocks and improper monetary policy pushed the price level ahead at an unacceptable rate. The consequence was an extended period of underperformance, which required radical measures to reverse. Some think that inflation has become the enemy again but in a different way. Thirty years ago, inflation was perniciously high, and expectations called for it to stay that way. Today, inflation is falling, and inflation expectations are following suit. Price stability is essential, but prices that are too stable can present problems as well. The present global disinflation ... (full story)