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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Perspective who wrote (239582)2/27/2010 9:44:34 AM
From: neolibRead Replies (1) of 306849
 
The ultimate end result - inflation or deflation - will depend to some extent upon the courses of action taken...

This is something else I don't understand. Its a common theme much discussed, and people hold strong views one way or the other. But if one truly thinks it could go either way, depending on policy tweaks, then why rule out the possibility that it will go neither way? I.e. if we are on a trajectory that falls off one side to deflation or the other side to inflation, why can't we carefully just stay on the same trajectory and avoid either one?

My guess is that this is in fact what Bernanke thinks and is trying to accomplish. Further, I'd guess that they think the process is somewhat robust. I'm not knowledgeable enough on the subject to know if they are right or wrong.

Yes, I'm an EE.
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