The Federal Reserve, for example, commented that “the probability of an unwelcome substantial fall in inflation, though minor, exceeds that of a pickup in inflation from its already low level” in its public statement after the meeting of the Federal Open Market Committee on May 6, 2003.
In addition, several central bank officials have commented on the manoeuvrability of monetary policy against the background of price declines. Conventional monetary easing calls for reducing short-term interest rates.