Do you think people in the early 2000s in the United States

Do you think people in the early 2000\'s in the United States thought that deflation was going to occur due to a rapidly rising output OR restrictive monetary policy?

Solution

Though the restrictive monetary policy was in play during the previous times, it can be mentioned that the production levels in the country rose or taken a boom in the early 2000s due to the globalisation or trade friendly policies all in all and this allowed huge capital inflows to the country which got to increase the productivity of the country on a huge node and this increased the deflation all in all.