So they can actually inflate it and deflate it according to their emotions.

I can also inflate or deflate it with the mouse wheel, so you sculpt it like clay. We have parts here that I can put on or pull off.

This pressure on the peripheral countries to deflate their already stagnant economies is turning into the eurozone s greatest challenge. The ECB s provision of liquidity can buy time, but only real adjustment can cure the underlying problem.

Full employment is better than high unemployment if it can be accomplished without inflation, Greenspan thought. If a bubble develops, and if the bubble does not deflate but collapses, threatening to cause a depression, the Fed would have the policy tools to short circuit that chain.

One problem with the word bubble is that it creates a mental picture of an expanding soap bubble, which is destined to pop suddenly and irrevocably. But speculative bubbles are not so easily ended indeed, they may deflate somewhat, as the story changes, and then reflate.

Mind you, two years previously, at the outset of the financial crisis, I suggested raising inflation to 4 or more for a period of a few years to deflate the debt overhang and accelerate wage adjustment. But there is a world of difference between temporarily raising inflation to address a crisis and unhinging long term expectations.

The confederation I advocate would thus constitute an intermediate stage (lasting five or ten years), at the end of which Kosovo is likely to become fully independent. Delaying a final solution in this way would provide time to verify Kosovo s prospects of joining the EU and thus eventually sharing sovereign authority with other independent states, which could deflate Kosovars dangerously robust nationalistic demands.

Thus, it became essential to launch a new wave of far reaching reforms, including liberalization of interest rates, securities markets, and foreign exchange controls, in order to fund the more productive private sector and reduce excess capacity in SOEs. In particular, the reforms were needed to deflate an emerging property bubble resulting from huge savings and foreign capital inflows that had no other profitable investment outlet.