I don't remember the exact wording, but Yardeni's conjecture proved to have been spot on. Falling tariffs and other disappearing trade barriers actually have kept prices low, thereby allowing central banks to keep interest rates at very low levels.
The problem is, not all prices have been crushed by the China-led international competition. I'm speaking about non-tradables, which are items that cannot be imported or exported. Home prices are especially important, since real estate and building industry form the main engine behind the business cycle. China doesn't help to alleviate inflation: try to import a cheap house from China. On the contrary, demand from the newly rich emerging market buyers contributed to the property price inflation.
Now look at the British home price index compiled by Halifax, compared with the Retail Price Index:
Because property is underrepresented or even missing in consumer price indices in most economies, inflation is wrongly perceived as low. Sadly, it's mostly central bankers who perceive inflation as too low. This is obviously wrong, because home ownership is a major cost item in many households.
Monetary policies based upon the Consumer Price Index have resulted into artificially low interest rates. The low rates have brought about property price bubbles in many countries. The story is not finished yet.
Morale of the story: Do you think central bankers have learned anything from their costly mistake? No. They haven't. Anything at all.