I'm not one to worry about inflation. You know that. But but I want you to look at this graph with an open mind:
|From SUMPRICE.PDF by Robert C. Sahr (2003)|
Inflation is a result, of course. You can't focus on inflation and do good economics. But I would say the same of unemployment and GDP -- and inequality, for that matter. Results. Let's not think about the results. Let's think about what might have caused those results.
It has to be something we fail to understand -- something policymakers fail to understand. Perhaps it's something that they ignore, something they dismiss out-of-hand when you bring it up. Something like private sector debt.
But who can say.