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"And if you take it a step further, governments then reflate."
So they have to reflate the economy and keep the currency relatively weak.
Mainstream economists maintain that lower rates are necessary to reflate the economy.
Japan has to reflate its economy and reform its banking system.
These days, it can barely reflate its own.
To reflate the economy, the Fed doesn't have to restore business investment; any kind of increase in demand will do.
These emergency measures, which included zero interest rates, were adopted in the 1990's to reflate the economy.
Fisher believed that had governments or private enterprise embarked on efforts to reflate financial markets, the crisis would have been less severe.
Where is the morality in trying to reflate the bubble and return the country to the age of irresponsibility that led us to this mess?"
Beware people using the "spectre of deflation" to sneak in policies designed to reflate the economy by inflation.
Back then, the US Treasury could reflate and recapitalilse the world financial system by itself.
Yet we now face the very real risk that Brown will reflate the housing bubble by saddling generations to come with crippling levels of public debt.
Gavyn Davies at Goldman Sachs is the most inclined to reflate.
"The current administration is under enormous pressure to reflate the U.S. economy, and doing that through exports is not necessarily a bad strategy right now."
And U.S. exporters, whose profits fell when the dollar was high, opted to reflate them rather than make big price cuts.
However, rising unemployment in 1972 caused Heath to reflate the economy at the cost of high inflation, which he attempted to control by prices and incomes policy.
This time, Mr. Nakasone promised to "reflate the economy" by spending heavily on public works in the first half of the current fiscal year.
The fed is now trying to reflate the economy ( which Gordon Brown laughably calls Quantitative Easing- who dreams up these terms?
In a world of integrated capital markets, countries are often unwilling to reflate on their own, when they might be willing to reflate in concert.
This is because investors and consumers are deleveraging whilst central banks around the world are trying to reflate (inflate) with their money printing antics.
"When Sarkozy was chairing the European Union, Germany was then very reluctant to embark on a package to reflate the economy," he said.
Yet other Western states, still grappling with the aftermath of 1973, pressured Schmidt to reflate the West German economy faster so as to help their own recovery.
No surprise that the treasury wants to reflate the bubble that got us into trouble to begin with - After all they employ some of our country's best brains, allegedly.
Besides a further easing of rates, the government could reduce banks' minimum reserves to reflate the economy, but analysts say more reforms would be of more help in the longer term.
CBI gloom and a call from Peter Shore to reflate or resign was met by the advice from Geoffrey Howe to 'keep our nerve'.