Higher Inflation Is Not the Answer

Today’s NPR Morning Edition presented two sides to the question “Does The Economy Need A Little Inflation?”  By “a little” they mean 5 percent per year for a few years.   The former IMF chief economist and Harvard professor Ken Rogoff argued in the affirmative and was featured in the radio segment, as he has been arguing this view along with his successor at the IMF, Olivier Blanchard, for a while now. I argued for the negative in the segment saying it would do more harm than good to the economy, a point Paul Volcker has been making forcefully. A recent column by George Will puts the issue in the broader context of U.S. economic policy and also comes out on the negative side.
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