"Promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."
"A broad historical look finds many more periods of [good] deflation with reasonable growth than with depression, and many more periods of depression with inflation than with deflation."So why do governments and central banks all fulminate against deflation? Could it be that they benefit from low interest rates when they print money through quantitative easing? Would their economic mismanagement be far more visible if their deficits were far larger as a result of higher interest rates?
"Those that fail to learn from history, are doomed to repeat it."
Sir Winston Churchill, (1874-1965), British Prime Minister, author, historian, statesman
"Let us print the money instead ... quietly steal a certain amount from every pound saved in building societies, in national savings, from every person who has been thrifty."
Margaret Thatcher, first female British Prime Minister, rejecting the quantitative easing responsible for many of the country's economic woes