In an inflation-free environment, investors and the public generally get their best shot at reading accurately the signals that markets are delivering -- which goods and services represent best value, where the best returns on investment may be found, how much to consume and how much to save. Price stability is not a sufficient condition for strong growth.
Is UMP the right tool once the immediate crisis is over? Does it distort behavior and activity so as to stand in the way of recovery? 2. Do such policies buy time or does the belief that the central bank is taking responsibility prevent other, more appropriate, policies from being implemented?