Concerning policies to counter deflation, some argued that “if the central bank were to increase its balance sheet, then deflation would come to an end.” However, both the Bank in the first half of the 2000s, in implementing quantitative easing, and the Fed since 2007 significantly expanded their balance sheets; yet, there have been no corresponding price rises.
Based on such experience, the argument that “if the central bank were to increase its balance sheet, then deflation would come to an end” is rarely discussed in the United States and Europe.