Deflation worries, and to show it, I will take the case of Japan. The situation of the Japanese economy is such that industrial prices observed in the month of March, an annual fall of 2.2% (its biggest fall since 2002). According to Hideyuki Araki, Economist at the Resona Research Institute: companies are in a fierce competition to reduce prices, due to the weakness of the consumer. This competition which translates into reductions in prices also involves reduction in the flow of funds of enterprises and perhaps also, minor gains (since the fall in prices can not compensate for the increase in sales), increasing the risk of bankruptcy. Thus, fewer companies will survive in a market that is shrinking by the crisis and the increase in unemployment. The prospects of major economies do foresee that the context of deflation would be maintained. To make matters worse, the fall of the price of oil increases the margin for the rest of the prices in economies, continue to fall. The inability of monetary policy of the main central banks has already been amply demonstrated during the present crisis.

And this inability not only observed in the current context of deflation (and economic decline), but has also seen clearly during the sharp increase in international prices of commodities (agricultural, mineral and energy between the major), which had resulted in one increase in no less in retail inflation rate. It is time to reverse the way in which monetary policies are conducted? Probably yes. Monetary policies currently used as an exclusive instrument reference interest rate control. The same work, and very well in relatively normal economic contexts or those where economic problems are limited to the national level. But the same failing categorically against a widespread crisis or when the problem exceeds the national scope (as in the case of upward sustained increase in the price of agricultural commodities).