by Daily Bell Staff
The Daily Bell
Overcoming Our Inordinate Fear of Inflation … Why do we care so much about preventing inflation? When I put this query to baby boomers, they tell me that if I had lived through the inflation of the 1970s and early 1980s, I would understand. But this was also a time of slow growth, deep recessions and terrible asset returns. Inflation was hardly the only problem the U.S. economy was facing. So why does it stand out so strongly in our collective memory? – Bloomberg
This Bloomberg editorial provides us with lots of reasons why moderate inflation is not a terrible development.
Noah Smith is one of Bloomberg’s more original columnists, though we almost always disagree with him. Once again, with this editorial, he misses the main point in our view.
He analyzes inflation from the standpoint of communal rather than individual harm.
Thus, he concludes that in moderate doses it is not terrible at all.