Fearmongering about the risk of looming hyperinflation is exactly what the Fed wants. "The major...

|By:, SA News Editor

Fearmongering about the risk of looming hyperinflation is exactly what the Fed wants. "The major danger with a zero lower bound for the interest rate," Swedish policy-wonk Lars Svensson says (.pdf), "is that inflation expectations will be too low and even negative, and that the real interest rate will thus become too high."