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"The kinds of stimulative actions we take should be pro-growth," he said.
It will respond by tightening policy, either by raising the nominal interest rate or curtailing other stimulative actions in order to bring expected inflation back down to 2%.
Mr. Dalio explained his oft-repeated "deleveraging" theory, in which debts rise relative to incomes in a nation until the country, under threat of default, takes stimulative actions to bring the debt-to-income ratio back to more stable levels.
My personal read on the stock market is that it seems to be pricing in a fairly high likelihood of stimulative actions by central banks, both in the United States and Europe.
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"The low core inflation reading for October will reinforce concerns about deflationary risks in the eurozone and hence keeps pressure on the ECB to take further stimulative action.
On Friday, the Federal Reserve Board chairman, Ben S. Bernanke, disappointed investors by declining to signal any imminent stimulative action to bolster sluggish growth, though he kept the door open for further easing down the line.
Howard Archer of IHS Global Insight said: "The Bank of England's decision to hold off from stimulative action was highly likely the result of a tightly split vote and we strongly suspect that the MPC will act in the second quarter and very possibly as soon as April".
"The second quarter stagnation... clearly added to the pressure on the ECB to take further stimulative action sooner rather than later to try and dilute the risk of extended low consumer price inflation morphing into deflation," said economist Howard Archer at IHS Global Insight.
"Mr. Poole dissented because he believed that F.O.M.C. actions this year had already established a highly stimulative monetary policy stance," the minutes said, adding that he thought another rate cut "raised an undue risk of fostering higher inflation in the future".
Such action is not a substitute for more quantitative easing; but the stimulative impact would so much greater, with far fewer side effects.
Will it be greatly stimulative?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com