Between October 2008 and March the following year, however, the base rate was cut six times to an all-time low of 0.5% in order to avoid deflation and spur growth.

Rather, MMT suggests that continual budget deficits are necessary for a growing economy that wants to avoid deflation.

Policy is no longer driven by the need to tackle inflation; interest rates are being slashed to avoid deflation and a 1930s-style slump.

In addition, there were Americans who advocated the continuance of government-issued fiat money (United States Notes) to avoid deflation and promote exports.

Bernanke emphasized that Congress gave the Fed responsibility for preserving price stability (among other objectives), which implies avoiding deflation as well as inflation.

Control of the money supply implies that the government can always avoid deflation by simply issuing more money.

Some investors seem to think that Federal Reserve policy makers are so determined to avoid deflation that they will probably err toward inflation.

Mr. Greenspan and most economists say the economy is growing quickly enough to avoid deflation.

The US is still able to avoid deflation.

They are trying right now to avoid deflation and they might but then we would probably end up with stagflation or even wildly out of control inflation.