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January 15, 2014 AT 1:06 PM
Inflation has been mostly dormant in the US, despite the Federal Reserve's accommodating monetary policy, but it is likely to show signs of life this year. While prices that rise slowly may seem desirable, prices that rise TOO slowly--or even fall--could have negative effects on the economy: by incentivizing individuals and corporations to delay consumption and investment, and by making loans more expensive to service.