The More Guidance A Central Bank Can

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.

With Respect To Their Safety, Derivatives, For The Most Part, Are Traded Among Very Sophisticated Financial Institutions And Individuals Who Have Considerable Incentive To Understand Them And To Use Them Properly.

It Must Be Awfully Frustrating To Get A Small Raise At Work And Then Have It All Eaten By A Higher Cost Of Commuting.

The Federal Reserve Will Not Monetize The Debt.

While Rising Delinquencies And Foreclosures Will Continue To Weigh Heavily On The Housing Market This Year, It Will Not Cripple The U.s.