Inflation has traditionally been concern of federal reserve

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Inflation has traditionally been a concern of the Federal Reserve. Recently, there has been the possibility of deflation. Should the Fed be concerned with deflation of prices? What about targeting 'nominal GDP'? Can deflation occur without recession? Can deflation be beneficial? Will deflation worsen a recession or shorten it? Should the Federal Reserve do anything to prevent deflation? What policies do you recommend the Fed follow?

Reference no: EM131095587

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