There are two great waves that are coming towards each other at the same time: deflation and inflation. (Full disclosure: I read that analogy somewhere and liked it – I can’t remember where I read it, however.) The Officialdom is trying to set policies such that when these waves finish crashing against each other, neither will have the upper hand and the seas will calm. The problem is that policy-making is simply too difficult – and the world of economics too complicated and random – for that outcome to be a high or even reasonable probability. Consequently, it is likely that one or the other will turn out to be stronger once these waves have finished colliding. I don’t know which will be the stronger in the short term. But I suspect that inflation will win out ultimately… but that could be several years down the road.