It was Milton Friedman, not Ben Bernanke, who first made reference to dropping money from helicopters in order to prevent deflation. Bernanke’s now famous “helicopter speech” in 2002, however, was no less enthusiastically supportive of the concept. In it, he boldly previewed the almost unimaginable…
Interestratesmay continue at low levels for quite awhile with deflation being a live risk, says Roger Bootle, author and managing director of Capital Economics.
TheFed's commitment to keep rates low for years may have diminished interest - rate risk for Treasury investors, but inflation could still swallow up returns, says Morningstar's Eric Jacobson.