But if deflation were to develop, options for an aggressive monetary policy response are available. *  *  *  Fortunately, the ability of our economy to weather the many shocks inflicted on it since the spring of 2000 attests to our market system's remarkable resilience. That characteristic is far more evident 1 today than two or three decades ago.
There may be numerous causes of this increased resilience. Among them, ongoing efforts to liberalize global trade have added flexibility to many aspects of our economy over time. Furthermore, a quarter-century of bipartisan deregulation has significantly reduced inflexibilities in our markets for energy, transportation, communication, and financial services.