In purchasing power parity we have the fifth largest economy …” We are encouraged and inspired by your confidence in the nation’s capabilities. We assure you Sir, this Mill, the foundation stone of which you are laying today will live up to your expectations.
With an inflation target of 0%, there would be no buffer. If an economic shock occurs in such cases, you have deflation straight away. Is that so dangerous? The prices of computers have been falling for years. Surely that is good. Cheaper computers are a good thing. Deflation means that prices in the economy as a whole are falling steadily.