Central banks once worried about too much inflation. Now they fear an inability to generate more of it.
Fifteen years ago, Japan found itself stuck with a problem: sinking inflation, interest rates near zero and a limited ability to generate higher prices. Five years ago, Europe faced the same challenge.
The worry haunting Federal Reserve officials is that they will be caught in a similar trap within the next decade. This concern is animating their yearlong review culminating with a two-day research conference beginning Tuesday in Chicago.
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