I Don't See Much Evidence Of An

Although Low Inflation Is Generally Good, Inflation That Is Too Low Can Pose Risks To The Economy - Especially When The Economy Is Struggling.

Over The Years, The U.s. Economy Has Shown A Remarkable Ability To Absorb Shocks Of All Kinds, To Recover, And To Continue To Grow.

If You Are Asking Me If I Would Advocate That The Chinese Go To Greater Flexibility In Their Exchange Rate, I Certainly Would.

The Basic Prescription For Preventing Deflation Is Therefore Straightforward, At Least In Principle: Use Monetary And Fiscal Policy As Needed To Support Aggregate Spending, In A Manner As Nearly Consistent As Possible With Full Utilization Of Economic Resources And Low And Stable Inflation. In Other Words, The Best Way To Get Out Of Trouble Is Not To Get Into It In The First Place.

I Generally Leave The Details Of Fiscal Programs To The Administration And Congress. That's Really Their Area Of Authority And Responsibility, And I Don't Think It's Appropriate For Me To Second Guess.