With the coming anointment of Janet Yellen as Fed chairwomen and the return of Tobin Keynesianism to the leadership of Fed the calls are coming from many of the usual suspect for more inflation as a cure for unemployment. Sheldon Richman responds with “Inflation is the Last Thing We Need.
The call for more inflation as a stimulus for the economy continual resurrects itself from the trash pile of bad ideas despite the long run harm such policies always bring when adopted such as the last time Tobin Keynesianism dominated Fed thinking with the go-stop of the late 1960s and 1970s. Paul Krugman made the argument during Spring 2012. My response, “Not Enough Inflation?,” is still highly relevant.