Quantitative easing may be the only way out of adjusting money in circulation to enable the government to meet policy objectives, writes Danny Gabay.

The spectre of debt deflation haunts us. The phenomenon, first identified by Irving Fisher as long ago as 1933, is one in which falling asset prices reduce the working collateral available to finance debt, forcing individuals and firms to sell assets to repay that debt. And that of course sets off another leg-down in asset prices.