Why isn’t deflation or inflation a choice that government can make at will, through the magic of the many money creation tools at the government’s disposal?
In Japan, the government, as far as I know, was absolutely opposed to inflation, because the general population was. In the US, the people hate deflation (= dropping home and stock prices) more than inflation, so our elected representatives will surely do whatever it takes to create inflation. The only question is when it will appear, and how high it will go.
