Hmmm… I don’t think our leaders want inflation forces and deflation forces to cancel out over the next 5-10 years. They are looking for inflation. Inflation and its results form the package that most voters prefer, along with a lot of very powerful groups. [country as a whole is a net borrower… more people owe than are owed… most personal debt is visible, most personal ownership of debt is indirect, through pension funds etc…]
But people complain about everything, even their first choice, so pols will take great care to avoid taking blame for what they are doing – engineering higher inflation. It will be an “unforeseen, unplanned, unwanted” outcome, which will be overcome in slow ineffective steps until one leader takes responsibility for killing it, a la Volcker, because the public is finally really sick of it.
