Larry Summers Warns of Deflation Threat

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Imagine that at the same time survey measures of inflation expectations, such as those calculated by the University of Michigan and New York Federal Reserve in the US, were rising sharply.
Imagine also that commodity prices were soaring and that the dollar experienced a decline seen once every 15 years.
Imagine that the market estimate of future monetary policy in the US was far tighter than the Federal Reserve’s own policy projections. 

 Absolutely amazing. Summers has no idea how the economy works.