Just a quick reminder:
I think Reagan had this right. Inflation that averages around four percent is consistent with robust growth and minimizes the risk that the nominal interest rate on short-term government debt will go to zero. Efforts to maintain a 2 percent ceiling on inflation have brought few concrete benefits and put policymakers in the unnecessarily difficult position of trying to conduct unorthodox monetary policy measures during a time of economic crisis when elites necessarily come under suspicion.
Previous in TP Yglesias
By clicking and submitting a comment I acknowledge the ThinkProgress Privacy Policy and agree to the ThinkProgress Terms of Use. I understand that my comments are also being governed by Facebook, Yahoo, AOL, or Hotmail’s Terms of Use and Privacy Policies as applicable, which can be found here.