tag:blogger.com,1999:blog-7464708.post3350863915320842476..comments2024-03-22T06:05:36.544-04:00Comments on Kids Prefer Cheese: Krugman's reality problemMungowitzhttp://www.blogger.com/profile/02340064320347875601noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7464708.post-64971275817495010062011-08-28T19:51:02.869-04:002011-08-28T19:51:02.869-04:00Being in the group who would like to see a bit hig...Being in the group who would like to see a bit higher inflation, I am disheartened by this commentary. It implies that the reason inflation is too low is because higher inflation is politically constrained and that politicians would act to stop higher inflation and/or would be kicked out of office if they didn't. If this is the case, perhaps the best approach is for Congress to specify one precise target for the Fed to try to hit, just like the ECB or the New Zealand central bank. It has worked their without trouble of time consistency, so perhaps it could work here. I prefer level targeting and I think that might work. I fear for what could happen if the Perrys of the world cause substantial unexpected deflation.James Oswaldhttp://azmytheconomics.wordpress.comnoreply@blogger.com