St. Louis Fed President James Bullard is worried about deflation, and he has a new paper out today, that has caught the attention of Fed watchers everywhere. Here's the money quote:
The U.S. is closer to a Japanese-style outcome today than at any time in recent history.
For a quick review of what happened during Japan's "lost decade," listen to our interview with Adam Posen, author of Japan's Financial Crisis and Its Parallels to U.S. Experience.