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Janet Yellen: “I think the predominant risk is that inflation will be too low…”

In light of the “taper debate” culminating in this afternoon’s FOMC statement, as well as signs of disinflation everywhere, we thought this might be a useful time to review Janet Yellen’s views on the topic. Here she is speaking on the topic, in an admittedly different environment, in 2009. Note the focus on the risks of inflation below 2%.

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