A good Discussion on the Competing Views of Inflation Prospects

Tim Duy explains how to analyze what policymakers are saying about the prospects for inflation over the next couple of years. The key takeaway is that regardless of who is right, there will be inflation. It is a necessary part of recovering to a full employment economy. Some will seize on that as a failure of policy, when in fact it's what the economy needs to send proper signals to producers. For those critics, Keynes' comment in 1936 when told that the government was following a contractionary policy because they were afraid of inflation holds true today: "They fear that for which they dare not hope."