Archive - January 12, 2015

Can Central Banks lift the global economy out of an era of potential future deflation? The U.S. Federal Reserve may not have helped during the Great Depression. During the 1945-1973 era there was tremendous growth from the WWII victory which gave the U.S. a massive advantage in trade, gold, monetary policy, etc. and this was source of growth rather than Fed rate cuts. During the inflationary 1970’s the Fed failed to prevent inflation and certainly wasn’t needed to get out of deflation. In the 1980’s tax cuts provided stimulus to get out of recession. So when did the Federal Reserve …