[lbo-talk] Limits to currency intervention given deflation

[Michael Pollak]

Would there be any bad effect from Japan taking their current record high
dollar reserves and doubling or tripling or quadrupling them? Under normal
conditions, there would be an inflation threat at some point.  But under
deflationary conditions, that's not something to fear, it's a desideratum.
Is there anything else they should fear?  Economically I mean.  Because
otherwise I don't see why they'd stop.

Michael