Our Federal Reserve
prevents deflation by increasing the money supply and pumping more money into the economy.
What's more, the reason the Chinese government shouldered more liabilities is that it can
partially prevent deflation caused by capital flight.
In 1995, a group at Columbia led by Gerard Ateshian used theory to show that continuous knee movement could
prevent the deflation process if it occurred faster than the fluid could respond.
«However, it was unclear to us how our joints could
prevent deflation given the long periods of time we spend sitting and standing each day without some active input mechanism.»
The Fed and the other western Central Banks have imposed this extreme moral hazard on the market in what is being termed as «attempt to
prevent deflation.»
«
Preventing Deflation: Lessons from Japan's Experience in the 1990s.»
What we saw was a global monetary system that was adding significantly more stimulus to
prevent deflation.
They lower this when they want to stimulate the economy or
prevent deflation.