Olivier Blanchard
Is there deflation or inflation in our future? Some observers point to falling commodity prices, stumbling oil prices, and a depressed labor market and see low inflation, perhaps even deflation as far as forecasts go. Others point to the very large increases in fiscal deficits and central bank balance sheets and see inflation, perhaps even high inflation. I put most of my probability mass on the low inflation forecast. But I cannot completely dismiss a small probability of high inflation.
