Fire and Ice: The Fight Between Inflation and Deflation
What’s a More Significant Risk, Inflation or Deflation?
In this poem, Robert Frost posits the destruction of the world will be due to either intense passion or
bitter hatred, i.e., fire vs. ice. Too often, we tend to oversimplify our analysis to assume that only one
power or risk is present at any time. In today’s current market environment, we see the forces of inflation
and deflation are at work. Central bankers are and should be concerned about price stability, but too
many assume that price stability is only a one-way street.
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March Market Insights by Dr. James Thorne – Inflation vs Deflation
