Customer Quote by Ben Bernanke
“Although low inflation is generally good, inflation that is too low can pose risks to the economy - especially when the economy is struggling.”
About This Quote
Source Speech: Economic Outlook, 2021
Very low inflation can signal weak demand, risking deflation and limiting monetary policy effectiveness.
In simple terms: Too low inflation can hurt a struggling economy.
Key Takeaway
Monitor inflation to keep it within a healthy range.
Themes
economics
inflation
policy
riskmanagement
Mood
analytical
cautious
Type
financial
policy
When to use this quote
- central bank meetings
- business planning
- consumer spending
Key Concepts
deflation
monetary policy
economic health
Questions to Reflect On
- How can policymakers stimulate demand without causing inflation?
- What indicators should guide policy decisions?
A Different Perspective
Balancing low inflation with growth is challenging.
