Unnatural causes of debt

摘要

Globalisation may have helped to vJhold down inflation, but it has also raised some new dilemmas for central banks. Most notably, should they cut interest rates to stop inflation falling below their usual target in response to a boost to global supply—which is how they would deal with falling inflation caused by a slump in demand-or should they accept a lower rate of inflation? Most central banks aim for an inflation rate of close to 2%, in the belief that too little inflation can be as harmful as too much of it.