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We are in a deflationary period.
The Great Depression was a deflationary period.
During the early nineties, a similarly deflationary period, Britain got lucky.
"If we enter into a deflationary period, we won't have the monetary tools to sort it out," Mr. Carbó said.
As the United States enters a deflationary period, all kinds of companies will have to grapple with the consequences of falling prices.
"While I am not anticipating we will be in a deflationary period, it's a risk that I do take seriously, and we should continue to monitor what's happening with prices," Mr. Rosengren said in an interview last week.
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Even in deflationary periods, you never lose the interest you've previously earned.
The Forbes.com Investor Team feels concerns about inflation are premature, as we remain locked in one of the worst deflationary periods on record.
"There have only been four downturns like this in the last 200 years, deflationary periods when there is no borrowing capacity," says Craig Mundie, chief research and strategy officer at Microsoft.
The problem with TIPS is that they aren't much of an investment for deflationary periods, such as the one we are in now, as the principal is adjusted downward.
But according to the ruling, the rate is supposed to hold steady during deflationary periods.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com