The Inflation Temptation

摘要

Was This A Pebble that presaged an avalanche? The chief economist of the International Monetary Fund recently recommended that central banks raise their inflation target from 2 percent to 4 percent. The inflation temptation is back. Just 18 years of 4 percent inflation would cut currency's value in half. Furthermore, governments have neither the skill to precisely calibrate inflation at 4 percent nor the will to hold it there.