For example, the Federal Open Market Committee explains the reasons for its policy decisions in a statement released after each regularly scheduled meeting, and three weeks later we publish minutes with a detailed summary of the meeting discussion. The Committee also publishes quarterly economic projections with information about where we anticipate both policy and the economy will be headed over the next several years.
Finally, if deflation risks eventually subside, too loose a monetary policy stance can fuel excessive risk taking, which would give rise to a new asset bubble that would lead down the road to even greater problems. Let me spend a few words on this objection.