As economic growth stalled in 2009 after the money-market crisis, inflation also came to a halt and turned negative for a while in all of the key currency areas. Monetary policy was eased around the world, to support activity and prevent a destructive spiral of deflation.
It is all about, focusing on macroeconomic stability but from an “across-the-cycle” perspective to achieve a sustainable economic policy over time. Otherwise, all efforts will be vain and we will be trapped in the typical Argentine pendulum, swinging from one end to another of the spectrum of potential policies with no continuity whatsoever.