Moreover, the simulations suggest that inflation is currently a percentage point higher than would have been the case if the FOMC had never initiated a securities purchases, implying that, in the absence of such purchases, the economy would now be close to deflation. 11 Addressing some FAQs about the asset purchase program Has the program been effective in promoting the economic recovery?
My third point concerns the important role played by monetary analysis – and in particular the role of asset prices – when assessing the risks to price stability over the medium term. Price stability is our primary objective, but this does not imply that we only focus on short to medium-term movements in inflation.