Lower price and price expectations due to lower borrowing cost and unemployment and increased supply...

Inflation increases when demand or real wages or incomes increase and/or supply goes down, therefore to achieve the same prices should go down first and real wages or incomes increase which would decrease supply relative to demand and increase the price-level.

Higher demand and/or low supply expectations would increase inflation and inflation expectation. On the contrary targeting higher inflation and inflation expectation only due to increase in money supply and less focus on lowering inflation by increasing productivity and increasing real wages or incomes would increase only supply pushing economies in deflation and liquidity-trap by reducing spending.

In a bid to achieve exports and growth the Western countries have cut down on real interest and savings and real wages and incomes and consumption and demand by inflation and depreciation which has increased external demand at the cost of internal demand when countries like INDIA fared well by concentrating on the domestic demand.

When all countries do this at the same time global real wages or incomes and demand go down for all. However, if all countries try to increase their domestic real wages or incomes it would also increase demand for imports and exports. The global growth would go up.

Inflation and inflation expectations reduce spending because people would spend less and save more. Nonetheless, lower price and price expectations due to increased productivity and full employment and higher real wages would increase demand, consumption and (savings)/investment, or spending and the growth-rate...