Really, we need people to stop expecting prices to come down before they start purchasing things again. We don’t necessarily need inflation for a recovery, though.
Actually, two things will really bring on a recovery. First, prices need to come down to affordable levels, then start to creep back up just a little. This way, people can afford the things they need, and justify the purchase because they can say “the price will be higher later.”
I believe it was Rich who said the Fed doesn’t really manage inflation, they manage inflation expectations. This is why.
