Deflation - making sure "IT" doesn't happen here

The FED's playbook for the coming years, this is kind of frightening...

As I have mentioned, some observers have concluded that when the central bank's policy rate falls to 0 percent, its practical minimum, monetary policy loses its ability to further stimulate aggregate demand and the economy. ... this conclusion is clearly mistaken ... a government should always be able to generate increased nominal spending and inflation, even when short-term nominal interest rate is ZERO.
The conclusion that deflation is always reversible under a fiat money system follows from basic economics reasoning. ... US dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many US dollars as it wishes at essentially no cost.
By increasing the number of US dollars in circualtion, or even by credibly threatening to do so, the US government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising prices in dollars of those goods and services.
We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.

Ben Bernanke from
Deflation - making sure "IT" doesn't happen here