Let me also provide some thoughts on a debate that was recently raised by the IMF as to whether central banks should err on the lax side and aim at higher inflation rates in order to minimise the likelihood of deflation.
While I do see the temptation for governments to ask for higher inflation in order to monetise the dramatic build-up of public debt, let us not forget that it serves to expropriate the income and wealth of the general public to the benefit of those who have lived beyond their means. I can only reject the idea of raising inflation rates permanently.