Central Banker Affirms, Deflation "Is a Benefit for the People"

When was the last time you heard the head of a central bank assert that deflation is beneficial to the economy, even if only as a “correction” of previous inflation?  Well, if you were paying attention, you would have heard it just last week when Nandalal Weerasinghe, Governor of the Sri Lankan central bank, announced changes in his nation’s monetary policy.  While prices in Sri Lanka have declined by 2.1 over the past twelve months to a level not seen since September 2022, the economy has been growing at a rapid rate of 4.5 per cent per year.  In addressing this seeming paradox, Governor Weerasinghe explained to reporters: