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In mainstream economic thought, there is one primary way that the economy can go screwy. Prices can rise too fast, and this is called bad inflation. This is to be contrasted with good inflation, when prices are rising at the Goldilocks-just-right rate. Diehard Keynesians (and monetarists) do fret about falling prices. But as Ben Bernanke's infamous "helicopter money" speech demonstrated, they think that if you increase the quantity of money fast enough you'll never have falling prices.
Our view is that falling interest rates cause falling prices because each drop in the rate is an