Atlantic Capital Management Report: Radical Monetary Policies and the Radical Adjustments That Must Follow

We seem to be experiencing inflation and deflation at the same time, which is called biflation.

From the report:

The Federal Reserve System operates monetary policy as if economic activity during the asset bubbles was representative of true economic potential. To the Fed, the Great Recession has pushed economic activity so far below that potential it can stimulate with zero interest rates and quantitative easing well into the future, even after two years of it already. We believe the Fed is mistaken for the reasons contained in this report. Chief among them is that The Great Recession actually brought the economy back down toward its true potential. Further than that, it is likely that the current weak recovery is still running above true potential, and that is leading to a wide array of problems. Inflation pressures are the biggest.

http://www.scribd.com/doc/54663217/April-2011-Special-Report