The meaning of deflation and the characteristics that differentiate it from the more usual experience of inflation are subjects being actively studied inside and outside of central banks. As I testified before the Congress last month, the United States is nowhere close to sliding into a pernicious deflation.
Moreover, a major objective of the recent heightened level of scrutiny is to ensure that any latent deflationary pressures are appropriately addressed well before they became a problem. *  *  *  Central bankers have long believed that price stability is conducive to achieving maximum sustainable growth.