RBNZ Determined to Head Off Low Inflation, Deflation: Orr

The video discusses the economic challenges posed by COVID-19, focusing on the importance of maintaining monetary stability by preventing low inflation and deflation. It explains the pragmatic reasons behind setting inflation targets and highlights the risks of low inflation expectations leading to further economic issues. The video also addresses the challenges of deflation and high unemployment, emphasizing the need to achieve sustainable employment and stable inflation.

In what ways can low inflation expectations affect future inflation?

What are the potential consequences of not achieving the inflation targets mentioned?